changing mortgage provider ?

WilliamHill

can someone explain how if I change mortgage provider the new provider actually makes money. I've had a repayment mortgage for 15 years for £100k and as everyone knows the first years are spent paying all the interest which is why I still owe £83k, but if I change provider for the remaining 10 years they wont be getting the interest so how does this work?

edinburgher

Banks borrow money at wholesale market rates which are determined by a host of economic factors, don't worry about them making money out of you! But yes, their ideal customer is someone who'll pay 5% for 25 years without remortgaging onto a better deal

Beckyy

When you took out your mortgage you didn't have all 25 years worth of interest added on at once, its done daily or otherwise. Your current provider has made 15 years of your interest in profit so far. When you remortgage with a new provider they will be making profit on whatever interest rate they are charging you for the next 10 years + any fees associated with taking out the mortgage.