How to switch your mortgage deal mid-term

Would you switch your mortgage mid-term if you could save money? Here is what you need to know before you decide.

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Think carefully before securing other debts against your home. Your home may be repossessed if you do not keep up repayments on your mortgage or any other debt secured on it.

When you consider jumping to a new lender for a cheaper rate, there are a few things you will need to think about to see if it truly is cost effective for you.

When can you switch your mortgage deal?

    What one off costs will you pay?

    There are a number of costs you may need to pay, including:

      How do you find the right deal to switch to?

      You need to follow these steps to work out whether you will benefit from switching:

      Ask your current lender for a redemption quote

      This document will explain how much it would cost for you to pay off your entire mortgage, including any fees and charges that may apply. You will need to be able to borrow this amount from a new provider before being able to switch.

      Shop around for the best deals on the market

      It always pays to shop around. To make your search for a 'bargain' easier, think about your requirements:

        Come up with a shortlist of possible deals

        It is a good idea to select a number of 'possibles' based on the product features and eligibility criteria that matches your requirements, then work out the total cost over the course of the deal.

        Start the application process

        Once you have found a deal which will save you money, you can start your application online, over the phone, or in person, whichever is applicable.

        If you are successful, the lender will make you an 'in principle' mortgage offer — this means your application has been approved, if the information you provided in your application is accurate.

        Appoint a solicitor

        At this stage, you will need to find a solicitor you trust to handle liaison with your current and proposed mortgage lender, as well as oversee the rest of the application process (conveyancing).

        This will include:

          Are you ready to switch?

          If you are still unsure, or simply need help working out whether it is cost effective to switch your mortgage mid-term, visit our mortgage specialist page to receive a quote and contact details from an independent mortgage advisor in your area.

          If you're a first time buyer or looking to move house or remortgage, we can help you find the best mortgage deal to suit your needs.