Remortgage with existing lender or new lender: which is right?

When it comes to remortgaging, one of the crucial decisions UK homeowners face is whether to remortgage with their existing lender or switch to a new one. Both options have their advantages and potential drawbacks. This guide will help you understand the nuances and make an informed choice that suits your financial goals.

Remortgage with Existing Lender or New Lender

Understanding remortgaging

Remortgaging involves paying off your existing mortgage and replacing it with a new one. Homeowners usually consider this option to secure a better interest rate, consolidate debts, or release equity from their property.

Learn more: How to remortgage

Remortgaging with your existing lender


  1. Simplicity and convenience: Staying with your current lender can make the remortgaging process smoother and quicker. Since your lender already has your details and payment history, the administrative process can be less cumbersome.
  2. Lower fees: Remortgaging with your existing lender may involve fewer fees. You might avoid some of the costs associated with switching lenders, such as valuation fees and legal costs.
  3. Customer loyalty offers: Some lenders offer loyalty discounts or exclusive deals to existing customers. It’s worth checking if your lender provides such benefits.
  4. No early repayment charges: If you are close to the end of your current mortgage term, your lender might waive early repayment charges, making the switch cost-effective.


  1. Limited product range: Your current lender may not offer the most competitive rates or diverse products compared to the wider market.
  2. Lack of Incentives: New lenders often provide attractive incentives to switch, such as cashback offers or free legal services, which you would miss out on.

Learn more: Remortgage with the same lender

Unsure whether to stay with your current lender or switch?

Contact our expert mortgage advisers for personalised advice and guidance. Book your free consultation today!

Remortgaging with a new lender


  1. Competitive rates: By exploring options from different lenders, you can find more competitive interest rates and potentially save a significant amount over the term of your mortgage.
  2. Better deals and incentives: New lenders often entice customers with attractive offers, including lower rates, cashback, and other incentives.
  3. Tailored products: A new lender may offer mortgage products that better suit your current financial situation and future plans.


  1. Additional fees: Switching lenders typically involves extra costs such as valuation fees, legal fees, and potentially early repayment charges from your current lender.
  2. More paperwork: Applying with a new lender means you’ll need to go through the entire application process again, including credit checks and income verification.
  3. Potential delays: The process of switching lenders can take longer, potentially leading to a period where you’re not benefiting from the best rates available.

Making the right choice

  1. Assess your financial situation: Consider your current financial status, future plans, and how long you plan to stay in your property. This can influence whether staying with your current lender or switching to a new one is more beneficial.
  2. Compare deals: Consult with mortgage brokers to explore the best deals available in the market.
  3. Calculate the costs: Weigh the total costs involved in switching lenders against the potential savings. This includes any fees associated with both staying with your current lender and moving to a new one.
  4. Check eligibility: Ensure you meet the eligibility criteria for new mortgage deals, especially if your financial situation has changed since you last applied.

How to Decide?

When deciding between remortgaging with your existing lender or a new lender, consider the following steps:

Assess your current deal: Understand your current mortgage terms and identify your goals (lower payments, fixed rate, equity release).

Compare offers: Use comparison sites and consult mortgage brokers to explore deals from both your existing lender and new lenders.

Calculate costs: Factor in any fees associated with switching lenders versus the potential savings from a lower interest rate.

Check eligibility: Ensure you meet the criteria for new mortgage deals, especially regarding credit score and property valuation.

In summary

Whether you choose to remortgage with your existing lender or switch to a new one, the key is thorough research and careful consideration of all costs and benefits. By understanding your financial situation and goals, you can make a decision that best supports your long-term financial health. Remember, consulting with a mortgage broker can provide valuable insights and help you navigate the remortgaging process more effectively.


Can I remortgage if my financial situation has changed?

Yes, but your eligibility for new mortgage deals may be affected. It’s important to check the criteria of potential new lenders and consider consulting a mortgage advisor.

How often can I remortgage?

You can remortgage as often as it makes financial sense. However, be mindful of fees and the impact on your credit score.

What documents will I need to remortgage?

Typical documents include proof of income, bank statements, identification, and details of your current mortgage. Each lender may have specific requirements.

How long does the remortgaging process take?

Remortgaging with your current lender can take a few weeks, while switching to a new lender might take several weeks to a few months, depending on the complexity of your case.

Will remortgaging affect my credit score?

Applying for a remortgage involves a credit check, which can temporarily impact your credit score. However, consistent payments on a new mortgage can improve your score over time.

Can I remortgage to consolidate debt?

Yes, remortgaging to consolidate debt can simplify your finances by combining multiple debts into one manageable payment, often at a lower interest rate.

What are the potential drawbacks of remortgaging with a new lender?

Switching to a new lender can involve additional fees, more paperwork, and potential delays in the process. It’s important to weigh these factors against the benefits of better rates and deals.

Can I get help with the remortgaging process?

Yes, mortgage brokers and financial advisors can provide valuable assistance and advice throughout the remortgaging process. They can help you find the best deals and navigate any complexities.

What happens if I don’t remortgage when my fixed term ends?

If you don’t remortgage when your fixed term ends, you may automatically be moved to your lender’s Standard Variable Rate (SVR), which is usually higher than fixed or tracker rates. This can increase your monthly payments.

Is it possible to remortgage to release equity from my property?

Yes, many homeowners remortgage to release equity, which can be used for home improvements, paying off debts, or other financial needs. This involves increasing the size of your mortgage to access some of the property’s value.

Continue Reading

Get a free initial consultation:

Contact now



Mortgage Repayment Calculator