How difficult/ costly is it to switch mortgages after fixed term ends?

[Deleted User]

Hello,

I am a FTB looking into mortgages for my first home. Other posters have asked whether it would be more wise to fix for a 2 or 5 year period, given increasing interest rates. Additionally, I'd like to enquire as to how difficult it is to switch to a new mortgage/ mortgage provider after the fixed term ends, as this would be a consideration in my choice. Is it just a case of completing paperwork or might there be significant fees involved? Just trying to get an idea of whether interest rates are the main deciding factor or whether there are other variables to consider. Thank you!

[Deleted User]

Fees could be added by some and not others, depends who you choose to use - it's basically the same process as it was with your first mortgage.
And, it's a simple process to switch product.

housebuyer143

If you stay with the same lender you literally just pick a product and sign a piece of paper, so easy.

K_S

@Deleted_User A like for like mainstream remortgage (where you're not borrowing more, and you're changing lenders) is usually much more straightforward and cheaper than a purchase mortgage.

Conveyancing is either free (free lender legals) or covered by cashback, valuation is almost always free, affordability calculations are more relaxed (eg: there are mainstream lenders that will allow up to 6.5x LTI for like for like remos), etc.

A like for like product transfer (staying with the same lender) is even less hassle as it usually involves no credit checks, income checks or underwriting.

With respect to the lender product fees (which can almost always be added to the loan), whether or not the fee-charging or fee-free option works out best on a total cost basis will depend on how large your mortgage is. Very very generally speaking, the fee free options are likely to be cheaper the smaller your mortgage is.

Deleted_User said:

Hello,

I am a FTB looking into mortgages for my first home. Other posters have asked whether it would be more wise to fix for a 2 or 5 year period, given increasing interest rates. Additionally, I'd like to enquire as to how difficult it is to switch to a new mortgage/ mortgage provider after the fixed term ends, as this would be a consideration in my choice. Is it just a case of completing paperwork or might there be significant fees involved? Just trying to get an idea of whether interest rates are the main deciding factor or whether there are other variables to consider. Thank you!

[Deleted User]

Thank you all for your help! @K_S, my mortgage will be relatively small (around £70k) so I imagine fees won't be too significant. It seems a simpler process than I was anticipating!

RelievedSheff

Our last remortgage cost us nothing. We did the form filling, we chose a product without fees, free legals and free valuation.

It went through without a hitch and was very straightforward.