Not every remortgage is the same. Depending on your circumstances, you may choose to stay with your current lender, switch to a new one, borrow additional funds or even change the length of your mortgage. In this chapter, we'll explain the different options available and help you understand which could be right for you.
By the end of this chapter you’ll understand:
✓ The difference between a Product Transfer and a Remortgage
✓ When switching lenders may be beneficial
✓ How changing your mortgage term could affect your payments
✓ When borrowing more may be an option
✓ Why comparing all of your options is so important
Estimated Reading Time: 8 minutes
One of the first decisions you’ll make is whether to stay with your current lender or move to a new one. Neither option is automatically better than the other, it depends on your circumstances and what’s available at the time.
Product Transfer
A Product Transfer means choosing a new mortgage deal with your existing lender. Some homeowners like this option because it can often be a quicker process and may involve less paperwork. However, you’ll only be able to choose from the products your current lender offers.
Switching to a New Lender
Changing lenders opens up the wider mortgage market. Another lender may offer:
Changing lenders may involve additional checks and legal work, but many homeowners find it’s worthwhile if it results in a more suitable mortgage.
At NHMB, we’ll compare both options and explain the advantages and disadvantages of each before you make a decision.
Remortgaging isn’t just about deciding who your lender should be, it’s also about making sure your mortgage continues to support your financial goals. Depending on your circumstances, you may decide to:
Reduce your monthly payments
Choosing a longer mortgage term or a lower interest rate may help reduce your monthly outgoings.
Pay your mortgage off sooner
If your budget allows, shortening your mortgage term could reduce the amount of interest you pay over the lifetime of your mortgage.
Borrow additional funds
If you’re planning home improvements or another significant expense, remortgaging may provide an opportunity to increase your borrowing, subject to affordability and lender approval.
Secure greater certainty
Many homeowners choose a fixed-rate mortgage to provide predictable monthly payments and protect themselves from future interest rate increases. The right option depends entirely on your personal circumstances, which is why independent advice is so valuable. Rather than focusing on just one product or lender, we’ll help you understand the full picture before making a recommendation.
The cheapest mortgage isn’t always the best mortgage.
It’s natural to focus on interest rates, but the lowest rate isn’t always the right choice.
When recommending a mortgage, we also consider product fees, flexibility, early repayment charges, your future plans and whether the mortgage is suitable for your circumstances.
Choosing the first deal your current lender offers.
Many homeowners automatically accept their lender’s renewal offer without checking whether a better or more suitable option is available elsewhere.
✓ You don’t have to stay with your current lender.
✓ A Product Transfer and a Remortgage are two different options.
✓ The cheapest mortgage isn’t always the most suitable.
✓ Your mortgage should support both your current needs and your future plans.
✓ Comparing the whole market helps you make an informed decision.
Next Chapter →
The Remortgage Process Explained
Now that you understand the different options available, let’s look at what actually happens once you’ve decided to remortgage. We’ll guide you through the process step by step, so you know exactly what to expect from your first appointment through to completion.
