Remortgaging: Should You Stay or Switch? |

Remortgaging: Should You Stay or Switch?

Let’s weigh up the options

As homeowners approach the end of their current mortgage deals, one big question arises: should you stay with your existing lender or remortgage with a new one? This decision is a critical one, and the right choice depends on your individual circumstances, financial goals, and market conditions.

The property market in the North of Ireland has shown remarkable resilience despite national economic challenges. Local house prices have stabilized, and while interest rates remain higher than they were during the ultra-low-rate years, the market is showing signs of settling. Against this backdrop, the decision to stay or switch lenders requires careful consideration—and expert advice from a trusted firm like Mc Daid Mortgages can make all the difference.

Staying with Your Current Lender: Pros & Cons

Pros:

Simplicity and Speed: Staying with your current lender for a new deal, often called a “product transfer,” is typically quicker and involves less paperwork than remortgaging to a new lender.
No New Valuation or Legal Fees: Many lenders do not require a property valuation or legal checks for existing customers switching to a new deal, reducing upfront costs.

Cons:

Limited Options: By sticking with your current lender, you may miss out on more competitive deals available from other lenders in the market.
Not Always the Best Rate: Loyalty doesn’t always pay off. Other lenders may offer better rates or incentives that could save you money over time.
No Incentives for Switching: Unlike remortgaging, product transfers often lack cashback deals or free legal services that new lenders may provide.

Remortgaging to a New Lender: Pros & Cons

Pros:

Access to Better Rates: A new lender may offer a lower interest rate or more favorable terms than your current lender. This is especially useful if your property’s value has increased, giving you access to better loan-to-value (LTV) deals.
Incentives for Switching: Many lenders provide attractive perks, such as free valuations, legal fees, or cashback for new customers.
Tailored Options: Remortgaging gives you the chance to restructure your mortgage—for example, extending or shortening the term, or consolidating debt.

Cons:

Additional Costs: Switching to a new lender can incur fees, such as exit fees from your current lender and arrangement fees for the new mortgage.
Time-Consuming: The process often involves more paperwork, a new valuation, and possibly additional legal work.
Credit and Income Checks: Your financial circumstances will be reassessed by the new lender, and if your credit score or income has changed, it could impact your options.

Making the Right Choice

The choice between staying with your current lender or remortgaging to a new one depends on your financial goals and market conditions. For example, if you’re nearing the end of a fixed-rate deal and your lender’s Standard Variable Rate (SVR) is much higher, switching to a new lender or even securing a better deal with your current one could save you significant money.

Similarly, if you’ve built up equity in your home due to rising property values in the North of Ireland, you might qualify for lower LTV rates, giving you access to better deals. However, if simplicity and speed are your priorities, a product transfer with your existing lender could be the right move.

The Importance of Trusted Advice

This is where Mc Daid Mortgages comes in. As a trusted, local firm serving the North of Ireland, Mc Daid Mortgages is dedicated to helping homeowners navigate these critical decisions. With access to the entire market—not just a single lender’s products—their team can compare all available deals to ensure you get the best possible option for your circumstances.

We can process things on your behalf either with your current lender, or it’s more suitable for you then with a new lender – we will provide tailored advice which means you know you’re getting the full picture prior to making any decisions

Every adviser at Mc Daid Mortgages is fully qualified, regulated, and trained to provide expert guidance tailored to your needs. They’ll take the time to understand your financial situation, long-term goals, and risk tolerance, helping you weigh the pros and cons of staying or switching. From securing the best rates to navigating the complexities of remortgaging, their goal is to provide a seamless experience while maximizing your savings.

Final Thoughts

When your current mortgage deal expires, the decision to stay with your lender or switch to a new one is not one to take lightly. Each option comes with its own set of benefits and drawbacks, and the right choice depends on your personal circumstances and the current market trends in the North of Ireland.

For expert advice, personalized service, and access to the whole of the market, Mc Daid Mortgages is your trusted partner. Get in touch today to discuss your options and ensure your next mortgage decision is the best one for you.

Your property may be repossessed if you do not keep up repayments on your mortgage