You can now transfer mortgages from one lender to another. The main incentive is to get the cheapest deal possible to help you pay off your mortgage quicker or reduce your monthly repayments. However, it can also be a way of raising some capital too for things such as debt consolidation, home improvements or expensive purchases or events.
Also known as remortgaging or refinancing, switching your mortgage lender is a common practice for many mortgage holders. Just beware of charges that can be slapped on by your current and new lender and make sure the effort of switching will benefit you in the long run.
The idea being that your mortgage is only as good as the deal it came with, so many people who have a mortgage will review it on a regular basis and change it when it runs out and if they can get a better deal elsewhere.
You don’t get rewarded for being loyal, so there is no incentive for sticking with the same lender for the lifetime of the mortgage. However every mortgage is different, so it is best practice to stick to the best deal for you and your situation.
Read more about the practice of transferring your mortgage at www.transfermortgage.co.uk. They have a couple of articles that are worth a read, especially Mortgage Exit Administration Fees.
No comments yet.