Securing your next mortgage deal

Many homeowners believe they should switch to a new lender once their mortgage deal expires. Yet staying with an existing provider of their mortgage may be the best option, as banks offer increasingly attractive deals to retain existing business.

As the uncertainty of Brexit slows the housing market,  lenders are increasingly competing against each other for a limited number of customers looking to borrow money which has lead Banks and Building societies to desperately try to retain their existing customers. To do so, many are offering deals to switch rates, known as product transfers, which offer lower rates designed to compete with the deals on offer to  new customers.

In the same way that customers are offered a competitive deal at the end of a mobile phone contract to keep them on the Network, borrowers may be able to cut costs without having to leave their current lender.

The number of product transfers is increasing. Figures from UK Finance, the industry trade body, show that 291,900 product transfers were completed in the third quarter of 2018, the most recent data available. This represents £38.7bn of mortgage debt being refinanced, it said.

Product transfers can benefit homeowners greatly. The process can be  quicker than remortgaging, there are often no upfront fees, they are offered a great choice of fixed and discounted mortgage rates and early repayment fees are usually waived if the product has less than 3 months to run.

If you wish to find out more about how you can benefit from comparing a remortgage to a product transfer you have been offered, please do not hesitate to contact us.