Existing provider or shop around?

sand_hun

I have 95k remaining on my mortgage with a remaining term of 16 years, 4 months. Property value is approx 275-295k. My existing rate has come to an end.

When I choose a new rate I’m going to put in a lump sum of 20k to bring it down to 75k.

Is it wise to stay with my existing provider (FD) who I also bank with, or usually better to shop around?

I was thinking of doing a 2-year fixed maybe the one they have at 4.57%.

https://mortgages.firstdirect.com/mortgage-rates/list-rates

CliveOfIndia

There's no harm in looking at some comparison sites to get a feel for how your current lender's offer compares with what's generally available in the market. If someone is offering something substantially better, then go for it.

The one benefit of staying with your current lender is that very often they won't do another credit check (not guaranteed, but it's often the case). This may or may not be something that's of relevance to you, depending on your finances in general.

Altior

I believe FD allow unlimited charge free overpayments for most retail mortgages, as long as the mortgage isn't cleared. So that is a significant advantage, with the majority of lenders capped at 10% annually.

poseidon1

As of today FD's rate is 4.47% for 2 years at £490 fee.

For the low amount you will be seeking, I would stick with FD since the product fee is competitive, you avoid undergoing a full blown affordability questionnaire/ assessment with a a new lender, as well as the hassle of a new lender then having to securing their loan.

New mortgage application process has likely become more tedious since the last time you may have applied.

penners324

So you'll go onto the SVR until this is resolved. Pick a first direct product with ERC

Emmia

Personally if the rate is competitive, I'd stick with FD.

Switching lender and needing to take out a new mortgage is a lot of hassle Vs taking a new product with your existing lender, FD, which can usually be done with a few clicks online.

Rob5342

https://forums.moneysavingexpert.com/discussion/comment/82047025#Comment_82047025

I'd always shop around. A mortgage is your biggest financial commitment and a small interest saving now could mean clearing it much sooner.