Let’s get straight to the point here, no, it’s not typically a good idea to remortgage with the same bank straight away – typically called a product transfer.
But that’s not to say it’s not going to be the best deal for you, but we don’t recommend automatically remortgaging with your current bank or lender because they can only offer their own mortgages to you – so you don’t know yet if that’s the best deal for you.
There are over 90 lenders in the mortgage industry, and around 12,000 mortgages available at any given time.
Which means the potential for a better deal to be out there than a deal your current bank can offer is huge! So it’s worth checking the market for the best deal before committing to a remortgage with the same bank.
So how do you check the market?
We recommend not trying to do this yourself, you will end up on various comparison tables and bank websites showing you great super low interest rates.
These are often manipulated by the lenders so they appear at the top of the tables and sell more mortgages, but are typically offset with high arrangement fees also called lender fees – fees charged to you for taking out the mortgage.
It can get fairly complicated, especially if your personal circumstances aren’t the most typical.
Which is why we always recommend using a mortgage broker to check the market for you.
Using a mortgage broker isn’t as time-consuming as it might sound, in-fact it’s pretty quick, and won’t cost you a penny if you use a free one.
What’s more, intermediaries, or brokers, have access to exclusive deals that your bank will not offer you. That’s because they sometimes want brokers to do some of the work for them so offer them intermediary-only deals, but you can still get these deals if you use a broker.
So you may end up with the same bank but actually on a better deal than they offered you!
Remortgaging with the same bank/lender may sound like a quick and easy way to remortgage, and it is, but you could be missing out on huge savings, sometimes £100s per month simply by not checking the rest of the market for the best deal for you.
It’s always worth your time, you might be surprised by how much you can actually save.
And better yet, it can only take 15 minutes with our step-by-step guide on the best way to remortgage.