Can I change my mortgage provider?

The most common reason to change mortgage providers is because your current deal with your current provider is coming to an end. In the UK most mortgage deals last between two and five years. After your deal ends you will automatically switch over to your lender’s Standard Variable Rate (SVR).  It can be expensive to be on an SVR as the interest rates are typically higher than fixed-term mortgage deals. This means if you get moved to an SVR your monthly bill could jump by hundreds – even thousands – unless you take action.  

So if your deal is coming to an end, you have two main options: either choose a new deal with your existing provider – called a product transfer – or shop around for a new deal with a different provider – called remortgaging.  

Before you start shopping around for deals, it’s a good idea to figure out what you can afford to repay each month. Your circumstances might have changed significantly since you got your initial mortgage deal. You might have had a rise in pay, a reduction or increase in other living costs or switched employers – see how much you can afford, use our mortgage affordability calculator. 

The main reason to change mortgage providers is to save money by getting the cheapest deal you can. Mortgage deals are driven by the Bank of England’s “base rate” and by the competitiveness of the mortgage market. This means that even though your initial deal could have been the best on the market for you at the time, new deals from different lenders become available and you could save money by making a switch. 

Remortgaging might also help you to get a deal that offers extra flexibility or has features that can save you even more money.  For example, an option to overpay when you have spare cash, reducing the overall cost of your mortgage.   

The option to switch to an to offset or current account mortgage. This is when you can use any savings to reduce the amount of interest you pay permanently or temporarily – and have the option to draw your savings back if you need them.  

To get an idea of what you might pay if you remortgage, speak to a mortgage adviser.   

No. You can change providers at almost any time, but you will usually have to pay penalty fees if your deal isn’t coming to an end. You can usually apply for a new mortgage up to six months in advance from the date you need it to take effect. So you need to find out when your deal is ending and start shopping around for deals in good time.   

While penalty fees are typically best avoided, in some circumstances even with a hefty fee, you could secure a much cheaper deal that could save you even more money. If you’ve had a change in circumstances – such as an increase in salary, a reduction in living costs – you might find that you are offered even more competitive deals.   

If you have the funds to pay a penalty fee and secure a cheaper deal it’s worth considering overpaying your mortgage and staying on your existing deal. If in doubt ask your mortgage advisor about your options. You can also read more about overpaying your mortgage in our guide Should you pay off your mortgage early? 

A new deal can save you money and it could be tempting to jump in, but first you need to check if there are any fees on the new mortgage deals you’re looking at. Before you switch, be sure to look for any administration or other costs. Some lenders might offer to pay some or all of your fees for moving to them or provide cashback. But if they don’t, you’ll have legal, valuation and administration costs to pay.

If you’re thinking of moving house soon you should think carefully before remortgaging and locking into a new deal with large early repayment charges. If you know you’re likely to move, consider deals with low or no early repayment charges. To see how much you can afford, use our mortgage affordability calculator. 

It is also worth remembering that rates can go up and down and mortgage deals can suddenly become cheaper or more expensive without much warning. Locking what looks like a “cheap deal” for five years might prove to be costly if rates go down. Nobody can accurately predict exactly what will happen to property prices and interest rates, so it is wise to be careful where you go to for guidance and advice - speak to a mortgage adviser. 

After you have used our Mortgage affordability calculator to find out how much you can afford to borrow. Next speak to your current lender and check what the best deal they could offer you. This will give you a benchmark to then check other deals on the market.  

Next, you can then compare mortgage deals on a comparison website. Comparison websites won’t all give you the same results, so make sure you use more than one. This should give you a good idea of what’s available.