Remortgages are in high demand as homeowners are seeking better deals. Remortgage products are constantly evolving and changing so if it has been awhile since you have considered a new deal, then it could be a very different market for a homeowner than it was a year or even years ago. When a homeowner is making the decision to remortgage there is always the consideration as to whether a remortgage deal should be sought with the current mortgage lender or a new one. So basically the question is should you stay with your current mortgage lender and switch to a new deal or should you remortgage with a new lender. The answer is you chose which will be more beneficial financially.
There are factors that would make it beneficial for a homeowner to stay with their lender. In sticking with the same lender a homeowner would likely avoid issues that would involve credit reporting problems, valuation of the property, and additional fees for legal work or valuations. Staying with the same lender means that they have a payment history on you and will take into consideration their past experiences with you. This could be favorable if there have been changes in your employment recently or credit problems.
Lenders will also offer incentives to those homeowners that will stay put. Some have no penalty fees or application fees to make switches to new deals. This could be a considerable savings if there will be fees if you move to a remortgage. There are also some lenders that offer far more than a waiver of fees and
penalties. They also offer a cash back sum if you switch to one of their new fixes or trackers when the current deal ends. These cash back sums can be considerable amounts and a homeowner should definitely take notice as to whether that is an opportunity available.
If the deals found by sticking and switching aren’t enough, then a homeowner would want to shop around for what remortgage deals are available. Of course what would be a good reason to move to a new remortgage lender would be a considerably lower rate. Since fixed rates tend to be higher than a tracker then finding a lower fixer would be a good reason to move and remortgage but any penalty fees for moving should be considered. In some cases those will be offset by a new lender. There are also some very good incentives offered to new borrowers seeking a remortgage such as waived fees, free valuations, and reimbursed legal work.
A switch to a new deal with your current lender can have benefits and there are also financially beneficial reasons to consider a remortgage. It is strictly a situation in which all factors should be considered as well as offers available. To make sure you have the best information it will be important to meet with your lender as well as with those that have deals you are considering. Make sure all fees, penalties, and expenses are explained and reflected in the paperwork or data you obtain so that you can make an educated decision as to whether you should stay or you should go.