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Switch to a new mortgage deal with L&C

If you’re looking to switch to a new mortgage deal, L&C can help you work out how much money you could save, and whether you’re better off moving to a new lender or sticking with your existing one.

Our online Mortgage Finder makes it easy to compare the rates offered by your current lender to 1000s of other available deals. When you’ve completed the Mortgage Finder you’ll be able to see which ones you’re eligible for, and we’ll make sure you qualify before you apply.

Once you’ve spoken to one of our mortgage experts and we’ve recommended the best option for you, you can apply either online or over the phone. We’ll be on hand to help you through the process from start to finish, and our advice won’t cost you a penny.

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Changing Mortgage Providers Pros and Cons

Have you ever thought about changing mortgage providers? If your current mortgage deal is coming to an end, you may be able to save money if you switch mortgage. When your mortgage deal finishes, you’ll usually be automatically moved onto your lender’s standard variable rate (SVR). This tends to be higher than the rate you’ve been paying, so it’s a good idea to start looking at switching mortgage lenders around 3 to 6 months before your current deal ends.

You may also be considering a mortgage rate switch if your current deal isn’t flexible enough for your circumstances. You may, for instance, want to overpay on your monthly repayments in order to pay off your debt sooner. You could find a mortgage switch offer which allows for this flexibility, although you should be aware that you may have to pay an Early Repayment Charge for leaving your current deal before the end of the agreed term.

Alternatively, you may wish to change to a different type of mortgage. If you want to rent out your home then you may be considering switching to a Buy to Let mortgage, or if you’re currently on a repayment mortgage you may be looking at switching to an interest-only mortgage.

Some people may choose to switch mortgage if the loan-to-value ratio of their home has decreased over time. This may happen if you’ve overpaid your mortgage, or if the value of your home has increased. Either way, you may be eligible for a more competitive mortgage rate which could save you money.

Switching Mortgage Process

How long it takes for a mortgage rate switch can depend on a number of factors, including whether you’re sticking with your current lender but just switching mortgage deals, or switching mortgage lenders entirely. It’s worth finding out when your current deal finishes and then start looking around for a new deal a few months in advance.

The first step is to speak to your current lender to see what they can offer you as a new mortgage deal.

If you’re happy to switch mortgages with the same lender, the costs involved can be lower than moving providers. However, your current lender may only be able to provide you with a limited number of options, so it’s worth comparing mortgages from across the market to find the best deal for you. Moving away from your current lender could mean you’ll have a much wider choice of mortgages at better rates.

If you decide that you do want to make a change, then before going straight to a lender and switching, mortgage brokers are a good place to start as they’ll help to make sure you get the best deal for your circumstances.

Switching Mortgage Eligibility Criteria

Eligibility criteria vary between lenders but you can expect some similarities. When it comes to switching mortgage lenders, you will need to pass many of the same eligibility and affordability checks as you did when you took out your initial mortgage. To ensure you’re eligible for a good mortgage switch offer, you should:

  • Check your credit report and understand your credit score. If there are any discrepancies or mistakes in your credit history, make sure to amend these before applying to switch your mortgage.
  • Find out from your current provider exactly how much you still owe on your mortgage and whether you’re liable to pay any Early Repayment Charges or exit fees.
  • Remember that lenders will want proof of income and your outgoings, so you’ll need to prepare the relevant information including your bank statements and pay slips or business accounts if you’re self-employed.
  • Find out your home’s value.
  • Work out how much equity you have in your home to find out your loan-to-value (LTV) ratio. A lower LTV typically means better mortgage rates.

Finding the best Switch Mortgage Deal with L&C

If you’re thinking of switching mortgage deals, L&C can help you to work out how much money you could save, and whether you’re better off moving to a new lender or sticking with your existing one. Take a look at our cost of doing nothing calculator to see the impact of not switching to a better deal.

Our online Mortgage Finder makes it easy to compare the rates offered by your current lender to hundreds of other deals. When you’ve completed the Mortgage Finder, you’ll be able to see at a glance what you’re eligible for, and we’ll make sure that you qualify before you apply.

Once you’ve spoken to one of our mortgage experts and we’ve recommended the best option for you, you can either apply online or over the phone. We’ll be on hand to help guide you through the process from start to finish, and our advice won’t cost you a penny.

Switching mortgage FAQs

Can you switch mortgage deals early?

You can switch mortgage deals early, but you may have to pay an Early Repayment Charge (ERC) to leave your existing deal. These charges can be expensive, so you may be better off waiting for your current deal to finish before you switch. Our experts can help you work out whether you should change your mortgage now or wait. If you want to compare one deal against another, take a look at our mortgage comparison calculator.

Do I need a credit check to switch mortgage deal?

If you’re switching your mortgage to a new lender, a credit check will be carried out as part of the application process. If you’re switching deals with the same lender without increasing your borrowing, they might not insist on carrying out a credit search as you already have a relationship with them. Our online Mortgage Finder allows you to see which deals you might be eligible without the need for a credit check. This will only be carried out when you submit your full mortgage application.

Will I be charged any fees when switching mortgage?

There are various costs that you may have to pay when you remortgage, although many deals come with offers such as free legal work or cashback, which can help keep costs to a minimum. If you’re switching your deal with the same lender, you might not need to pay a fee for the property valuation or the legal work, but you might still be charged an arrangement fee. Our experts can help you find the deal that works best for you. You can find out more in our guide ‘How much does it cost to remortgage?’.

Can you change a Buy to Let mortgage to a repayment?

If you currently have a property that you let out but you decide that you want to live in it yourself, you can switch from a Buy to Let mortgage to a residential mortgage. You may be able to switch to a different mortgage deal with your current provider, although it's a good idea to shop around to check whether you can get a better deal elsewhere. We can help you to navigate the process of changing from Buy to Let to a residential mortgage, and find the right lender for your circumstances.

Can I change my first time buyer mortgage to Buy to Let?

If you own your first home and decide that you want to let out your home, then you'll have to switch from a first time buyer mortgage to a Buy to Let deal. Your current lender may allow you to do this so check with them first. If not, you can look at the option of remortgaging to a different lender.. Remember that if you're purchasing another property to move into, then you'll likely need a new mortgage for that too. The team here at L&C can help you to find the best rates for both mortgages and guide you through the process.

Can you swap your mortgage to another house?

The process of moving your existing mortgage to a new home is called 'porting'. Many lenders allow this, but you should check if your mortgage is portable when you start to think about moving house. When you ask to port your mortgage, you essentially have to reapply, so there's no guarantee that the same deal will still be available to you. It might not also be the right option if you've moved to a more expensive home and need to borrow more. If the rates for porting your mortgage aren't attractive, you'll have to remortgage - which could result in Early Repayment Charges and exit fees. Again, we can help you to navigate the process of buying a new home and find the best solution for your circumstances.

You might also be interested in:

What is Let to Buy and how does it work?
Porting mortgages: Can I take my mortgage with me when I move?
How much does it cost to remortgage?