7 myths about switching your mortgage

7 myths about switching your mortgage
There are lots of reasons you might not have switched your mortgage yet, but are they actually myths? We look at the top reasons why you may not have remortgaged yet and why it might be a good idea…

1. It’s a lot of hassle

The process can certainly sound confusing and time-consuming but that’s where we can help you. Not only do our expert advisers have the expertise and knowledge to scour the mortgage market for you, we’ll also do the legwork for you.

Our advisers will have an initial call with you over the phone to understand your current mortgage situation and individual circumstances. They’ll also be able to explain anything you’re not sure about.

It’s then our job to go away and do all the searching for you – to find the best mortgage rates and deals and make our recommendation to you. We’ll then help with the application, paperwork and everything else until your new mortgage is up and running. It's easier than you think when you’ve got help!

2. You won’t save much money

You’d switch your broadband, why not your mortgage? The potential savings from switching can be substantial – certainly compared to the savings available with things like car insurance, broadband and your mobile phone. It’s likely that you’ll be on an initial deal period, just as with your internet, so when that period runs out you’ll probably be moved onto your lender’s Standard Variable Rate. These tend to be much higher and if you don’t switch could cost you a lot of money.

3. If you have an Early Repayment Charge it’s not worth it

Some mortgage deals come with an Early Repayment Charge in their terms, so you’ll need to check if that applies to yours. Usually these charges decrease over the period of the deal, so may be 5% in the first year but 1% in the final year of a five year initial mortgage deal. So it doesn’t necessarily mean you’re better off staying put. Fill in our online Early Repayment Charge calculator to see if you’d be better off moving, or speak to one of our advisers to get a clearer picture.

4. It’s easier to stay with your current lender

It might seem easier to do nothing and stay with your current lender, but you’re likely to be moved onto their Standard Variable Rate if your initial deal period has ended. So it’s really worth giving us a call or getting started online to make sure you aren’t wasting money.

We can also help with product transfers, so you can stay with the same lender but ensure you’re on the best deal for you, and we’ll do the boring bits!

5. Remortgaging is expensive

There are some costs that will need to be covered when remortgaging, such as legal work and a valuation of your property, but you’ll often be able to get these costs covered by the lender as part of your new deal.

Some deals also carry an arrangement fee, but this is the same whether you stay with your current lender or move to a new one. Generally speaking, the larger your mortgage the more likely it’ll be worth taking a deal with an arrangement fee as these tend to have lower rates. But most lenders also offer a fee free option at a slightly higher rate. As part of our search we’ll take into account all of the costs involved to make sure you get the best value deal for you, and of course we don’t charge you a fee for doing this.

6. You only remortgage to release funds

People often choose to release some money from their home for many reasons when they remortgage, such as home improvements or repaying other debts. However remortgaging can just be about switching to a better deal, or perhaps to add features that your current lender doesn’t have, like being able to overpay large amounts or offset your savings against your mortgage.

7. You can’t do it right now due to coronavirus

We’re working from home so are ready and available to help you with your remortgage, doing the legwork from start to finish and finding you the best deal. The mortgage market is picking up pace with lenders continuing to offer great deals so don’t waste your money and get started now!
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