Mortgage companies are increasingly offering remortgage rates for existing customers in an attempt to retain mortgage business. There are some great rates available – if you know how to find them.
Are you looking for a better deal on your mortgage? If so, you normally have two choices.
You can either move your mortgage to another lender or you can take an existing customer remortgage deal where you benefit from a better rate with your existing lender.
Mortgage companies are increasingly offering remortgage rates for existing customers in an attempt to retain mortgage business. So there are some great rates available – if you know how to find them.
Advantages of remortgaging with same lender
There are several reasons why you would consider ‘remortgage with same lender’ deals:
You normally don’t have to go through an interview or an underwriting process. This means your mortgage will generally be switched straight to the new deal without you having to prove your income
- The fees and charges may be lower. You won’t necessarily have to pay valuation or legal fees for switching your home loan to another lender
- It’s quick and easy. You don’t generally have to fill in application forms or wait weeks for the process to be concluded
- You can often borrow additional funds. When lenders offer mortgages for existing customers you can often take an additional sum to consolidate debts or carry out home improvements (subject to the equity in your home and your personal circumstances)
How to find the best remortgage existing borrower deals
When it comes to establishing what the best deals are if you’re looking for a remortgage with same lender product you should generally compare remortgage rates for existing customers offered by your mortgage lender with those on offer from other providers.
It's generally best to use an online comparison to do this as many lenders don't list their existing customer remortgage deals on their website. For this reason if you decide to take out one of the mortgages for existing customers deals offered by your current provider you are likely to need to complete your application over the phone.
If you’re looking for a better deal on your mortgage then it can be a good idea to consider an existing customer remortgage.
However, your current lender may not have the very best fixed or discounted rates on the market and it may still be beneficial for you to switch your mortgage elsewhere.
For this reason it is worth comparing the total cost of remortgaging with the same lender with the best mortgage deal you could get if you switched to a different bank or building society to see which is best for you.