Car insurance, broadband contracts, and energy bills - all the experts agree that you shouldn’t blindly renew policies with your existing provider. There is often a cost for loyalty and there can be many savings to be had from a simple internet search to ensure you’re getting the best deal.
As with other annual bills mortgage providers will offer existing customers new rates to follow on from when their current deal ends. Switching your mortgage to this new rate then happens automatically, with no paperwork and no extra supporting documentation required. Perfect if you’re time sensitive, but the easy option of staying with your current lender isn’t always the best option.
Comparison website Moneyfacts revealed last week the average shelf life of a mortgage deal has fallen to 15 days, the joint lowest on record. Granted there is a greater mortgage choice than there was in October 2022 but lenders are constantly adjusting their products and repricing their interest rates to stay competitive. This leaves borrowers with little time to assess the merits of deals not offered by their current lender.
Timing is everything when renewing your mortgage. An early start to review your options can bring dividends and give you plenty of time to review your available deals. Once you’re within 6 months of your fixed rate ending, mortgage brokers, like our expert team at Poole Townsend, can review rates from your existing and new providers to ensure you have an overview of the best mortgage rates available.
There may be other options you’re considering which may result in you having to switch to a new mortgage provider:
- You may want a fixed rate deal for longer than your current lender offers
- You want to borrow more and your existing lender doesn’t offer further advances
- You wish to reduce the overall mortgage term and your current provider deems this unaffordable.
Switching to a new lender may require more supporting documents or a valuation of your property, so starting early ensures you have enough time to get everything in place.
Our mortgage team can advise on the benefits of various deals over different time periods, factoring in any arrangement or valuation fees and early repayment charges. Then you can make an informed choice as to the that best fits your financial circumstances.
Whether you wish to stay with the same lender or remortgage for a better interest rate or length of term our mortgage team can ensure you get the best deal from the high street and beyond. Start the conversation today and contact our expert team.