If your current mortgage deal is no longer competitive and you think you could save money by taking out a new mortgage product, you will have two options to consider; switching mortgage deals or switching mortgage lenders.
It is actually really common for homeowners to remortgage with a new mortgage provider and this could be a great way to save a considerable amount of money every month. Searching the whole mortgage market for a new mortgage product is always a good idea, even if you’ve been with the same mortgage provider for many years, and switching your mortgage could be beneficial for several reasons. If you’re keen to switch mortgage providers but you’re not sure where to start, below we have put together some useful tips to help with the process.
Get some assistance from a mortgage advisor
Whilst switching mortgage providers isn’t necessarily a complex process, it is highly recommended that you get some mortgage advice before doing so. Speaking to an experienced mortgage advisor can help you to ensure you’re making the right decision about your mortgage and that nothing important is being overlooked.
A mortgage advisor can help you to better understand the options available on the mortgage market too. Terms and conditions vary considerably from one lender to another and your mortgage is often the biggest loan you’ll take out, so it’s best to seek some expert advice.
Double-check how much switching providers would cost
If your existing fixed rate deal hasn’t yet come to the end of its term and you’re planning to switch mortgage providers, it is likely that you would have to pay an Early Redemption Charge and exit fee. These fees differ depending on a number of factors, but it’s crucial to find out how much you’ll have to pay before you start the switching process. Don’t forget to inquire about other costs involved such as; arrangement fees and legal fees as well.
Often, if you’re switching mortgage lenders to save money, switching and incurring the costs would still be cost-effective in the long run, yet you need to learn more about the fees you’ll have to pay in order to ensure this is the case.
Speak to your existing provider about their other offers
Whenever you’re considering switching mortgage lenders, it is worthwhile looking into simply switching mortgage deals too. Your current provider may have other deals available that meet all of your needs and sometimes, sticking with your existing provider is the best option. If you choose to switch deals, you might not have to pay as many fees and it would usually be a quicker process too. A mortgage advisor can help you to compare the mortgage products you’re being offered if you’re unsure whether they’re the right choice for you.
Get your paperwork in order for the new mortgage application
During the switching process, you need to apply for the mortgage product you’re interested in with a new lender and you have to complete an application. To make doing so as hassle-free as possible, organise all of the required documents in advance. Generally speaking, switching mortgage providers takes a few weeks and you can prevent the process from dragging on by being prepared and efficient with your application.
Consider reducing your LTV ratio
Before you start looking at the different products on the mortgage market, it’s worth considering whether you’re able to reduce your Loan To Value (LTV) ratio. Reducing the amount you need to borrow from a lender could help you to get a more competitive mortgage with lower interest rates and it could make a big difference to the mortgage deals you’re offered.
There are a few ways you could reduce your LTV ratio, for example; you could carry out some home improvements to increase your property’s value or you could use some of your savings to contribute towards the existing amount of equity you have.
Looking for local mortgage advisors?
Should you be interested in switching mortgage providers, contact our team here at Blue Q today. Regardless of what your reasons may be for wanting to get a new mortgage deal, our expert team will do all they can to help. We pride ourselves on providing professional and sound mortgage advice to customers, and we can help you to ensure you’re not wasting money on an uncompetitive deal. We also offer whole of market advice and we are dedicated to making the process of finding a new mortgage product as stress-free as possible.