To switch or not to switch? That is the question (that we are helping you to answer)

For something as significant as your mortgage, you want to make sure that, at every step of the way, you are making informed decisions that protect your own best interests.

The two main options when renewing, are:

• Stay with your current lender or
• Explore other options in the market.

Both options come with their own advantages and drawbacks, so we have put together the below list so you can start to think about which choice may be right for you.

Staying with the same lender

Advantages

The main advantages of staying with the same lender are down to the time and hassle it can save you. A renewal with the same lender - whether you are carrying on with the exact same mortgage product or going for something else they offer – can be almost instant if needed. There is also no need for an application process or credit assessment, which can save you further time and effort.

Disadvantages

While continuing with your current lender can save you time and hassle, it does not necessarily save you money – it could be doing the opposite. The lender you have now may have offered you the best deal a few years ago, but your circumstances may have changed a lot since then and the market could now be full of other lenders and products that are more suited to you, that you may previously not have been eligible for. As a mortgage broker, I have worked with so many people that assume they are still getting the best deal for them, until I help them explore their full range of options.

Going with a different lender (remortgaging)

Advantages

The main benefit for remortgaging is that it can save you money long-term. Not only could the offerings of other lenders be more suited to your current financial situation, but many lenders offer exclusive deals to new customers, giving you the opportunity to save even more. Also, let’s say there is slightly more household income since taking your mortgage a few years ago, maybe you or a partner have had a promotion or moved to a better paying job. The full financial review that comes with remortgaging could give you the opportunity to reduce your mortgage term which could ultimately save you interest, or possibly mean you could borrow more than you could before, allowing you to put more towards things like home improvements or consolidating debt.

Disadvantages

The market is large and complex and it’s important to consider the greater timescales involved with the remortgaging process. Some people prefer to avoid remortgaging even if it means they could save money elsewhere; if you are comfortable with your monthly repayments and have successfully budgeted around them, then it is understandable to not want the hassle of moving lenders.

Also, the flipside of a financial review is that, if your financial situation is worse than it was when you last drew down your mortgage, it could leave you with less borrowing power.

The value of a broker

Any mortgage decision you make has pros and cons, and the consequences of not getting it right first time could be massive. Many people make the mistake of thinking they can handle their mortgage journey alone, when access to support is vital to help them make the best decision for them.

A mortgage broker will sit down with you to fully understand your needs and capabilities. They have relationships with most of the mortgage market and will be on-hand to provide specialist, impartial advice that is based on you and your own unique circumstances.

Using the help of a mortgage broker is a key to ensure that you are going into these huge decisions fully informed and confident that the outcome will be the best for you.