You can find a new mortgage interest rate deal without going through the entire remortgaging application process. It may be more beneficial to switch your product to a different one with your current lender.

This is the information you should be aware of.

What is a rate switch?

A rate switch, also known as a product transfer, is when you change your current mortgage interest rate to a new one.

Mortgage rate switches can change in a few different situations. You might be nearing the expiration of your current deal, which means you need to switch to a new one, or your lender has introduced a new rate that you’re interested in.

Lenders offer various mortgage rate deals, each with different interest rates and durations of commitment, so it’s essential to select the option that fits your budget and personal situation best.

What is the difference between a remortgage and a rate switch?

A mortgage rate switch means you are staying with your existing mortgage lender and just changing the interest rate deal on your loan. It’s just a deal change. We do not charge a broker fee for rate switches and the process is much faster.

A remortgage is when you either borrow more money when you change mortgage deals with your existing lender or if you choose to move your mortgage to a new lender altogether. A remortgage means going through the mortgage application process again, which can be time consuming and often a challenge.

“I’m moving houses but would rather transfer my mortgage over than start a new mortgage application. Can my mortgage move from my old property to the new one?”

You can only move houses with your current mortgage if the mortgage is what is known as ‘portable’. Many lenders provide portability options, and your broker can assist you with this process. If your mortgage cannot be transferred, you will need to obtain a new one.

When is the best time to do a rate switch?

It’s a good idea to look for a new deal before your current one expires. Many lenders allow you to change to a different rate during the last three months of your current agreement, and several now permit changes in the last six months as well. If interest rates drop unexpectedly and you want to secure a lower rate, this flexibility is beneficial.

Taking some time to consider your options is important. Would you prefer to secure a rate now for stability, or are you okay with waiting to see if the rates change, even if it means they might increase and you could miss a better offer?

One benefit of locking in your rate early is that you can switch to a different one if they go down, even just a few days before the new product begins.

Be cautious that lenders tend to change when you can access your account to choose your next rate.

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We have created a helpful table with lenders’ dates. We try to update this as much as possible:

Can you switch before you current deal runs out?

You can typically change without being charged in the last 3-6 months of your mortgage agreement, based on your lender’s terms and conditions.

You can change your mortgage rate anytime, as long as you’re willing to pay the associated fees. Many lenders will impose an early redemption charge if you decide to change your rate within the last three to six months, so it’s important to look into the amount of that charge before making a decision.

Do you have to stay with your current lender or can you switch to a new one?

Choosing a mortgage provider is an important decision. You might be committed to a contract with them for five or ten years. I understand why a lot of people prefer to stick with their current lender when it’s time to find a new deal instead of searching for a different lender.

You might lose out on a better deal if you remain in your current situation. Explore different options, check the available products, and read reviews from other customers. Ensure that lenders deliver on their commitments regarding both service and product offerings.

Sometimes sticking with your current lender is the best choice, while other times, switching to a new lender may be more beneficial. Working with a broker can help simplify your tasks and provide you with confidence that you are aware of the best options for your situation.

Do you have to pay any fees?

If you decide to switch during the fee-free period near the end of your product, you typically won’t incur any charges for leaving your current deal.

You might need to pay an arrangement fee for your new mortgage deal, but most lenders offer some options for how you can pay it. You can choose to pay the fee upfront or include it in your mortgage loan. If you include it in the mortgage, your balance will go up, which means you’ll end up paying more interest over time. If you pay them upfront, you probably won’t get a refund if you choose to switch to a better deal later.

What are the consequences of not changing mortgage rates before your current agreement expires?

If you don’t choose a new mortgage deal before your current one expires, you’ll likely be placed on the lender’s standard variable rate (SVR). While the SVR has no fees for switching or paying off your mortgage, that’s likely the main advantage it offers.

The SVR interest rate varies with the Bank of England base rate, and it is typically set at a level that is significantly above other mortgage options, resulting in increased monthly payments.

Do you need to give any documentation?

You don’t need to upload any documents such as bank statements, pay slips, or proof of deposit for rate switches. Some lenders might ask you to sign a declaration indicating your consent to proceed with the rate switch, but they won’t need the same documents that are required for a mortgage or remortgage application. Many people opt to change their rates for this reason. It’s simple and affordable.

Do lenders require a credit check for rate switches?

Many banks and building societies let you change your mortgage rates either online or by phone. Since your current lender already has your information, a credit check is usually not required.

Do you need a solicitor?

No. You don’t need any legal assistance, so a solicitor or licensed conveyancer isn’t necessary.

Which product is best for me?

The decision is yours to make.

A 2-year fixed rate offers a lot of flexibility. If you believe that rates might go down soon, choosing a 2-year fixed rate could be a good choice so you won’t be locked into the same rate for an extended period.

A 5-year fixed rate is a good option for those who prefer stability. If you believe that rates will rise, it might be a good idea to choose a 5-year fixed rate to keep your rate as low as possible.

Consulting with a broker can assist you in making a decision, as they will consider your preferences and guide you toward securing the best rate available.

If you’re not fully knowledgeable about mortgages, it’s advisable to consult our mortgage brokers to discuss your options before proceeding.