MSE News: Staying with your existing lender may now be cheaper than switching to a different one

If you need a new mortgage you might now be much better off sticking with your existing lender than switching to a new one. We take a look at the difference between 'sticking or twisting', and why the balance between the two options has shifted.

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'Need a new mortgage? Staying with your existing lender may now be cheaper than switching to a different one'

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  • diystarter7
    diystarter7 Posts: 5,202 Forumite
    First Anniversary First Post Name Dropper
    edited 15 November 2022 at 10:46AM
    Seconded,  as two of of children had 5 year fixed mortgage rates coming to an end from mid to Sept 2023. There were penalties for leaving the fixed deal early. Both changed days before rates shot up to 6% and got the best deals with their existing lenders. Both have outstanding amounts of between 400 and -500k.  Even after the penalty and set up costs they are in a pretty ok position and not have to worry for 5 years-ish. Their new fixes from memory was around 3.6/3.7 from the previous 3.3.
    (Both had not only paid on time but had been paying back extra on their mortgages so I guess the existing lenders were very happy to keep them on)
    NB: Not sure re exact date but the new deals were agreed  4/5 working days before rates really shot up and our children and me had discussed this earlier and I was encouraging them and one was more receptive than the other - but one of them shop around a bit and the other not as much but it was, on the whole, a lot easier and really good rate at the time)

    PS: As things have calmed down, do shop around and you should not be in a rush unlike a few weeks ago.


  • Yes I agree, I called London and country about remortgaging to someone new so I could search whole of market and was quoted 5.64% with hsbc.
    Called Halifax who is my existing lender and been offered 3.69% for 3 years (had to pay ERC £1100 as I’m not due until April) and even after the ERC it still works out cheaper overall
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