Should I Stick With My Current Mortgage Lender? | When your mortgage deal comes to an end, the path of least resistance is often to accept a new offer from your existing lender. It’s convenient, requires minimal paperwork, and may seem like a stress-free choice. But should you stay with your current mortgage lender, or could switching offer a better deal?

This article explores the key considerations of staying put versus remortgaging elsewhere, helping you make an informed, compliant financial decision aligned with your needs. With so many mortgage product transfer options and deals available, it’s essential to understand your rights, responsibilities, and opportunities.

What Is a Product Transfer?

A product transfer is when you choose a new deal with your current mortgage lender, usually when your initial fixed or discounted rate ends. You avoid full remortgage underwriting, credit checks, or property revaluation. It’s typically quicker and smoother than switching lenders.

While this can be a valid option, it’s not always the most cost-effective. Lenders may not offer their best deals to existing customers, meaning you could miss out on lower rates or better terms elsewhere. Always compare your lender’s product transfer with independent remortgage offers.

To understand how product transfers work in more detail, visit our Mortgage Product Transfer guide.

Benefits of Staying With Your Current Lender

Remaining with your lender can be a practical solution, especially if your circumstances have changed. Common advantages include:

• No legal or valuation fees
• Faster completion (usually within 1–2 weeks)
• No credit or affordability checks
• Easier approval if you’re self-employed or recently changed jobs
• No need to provide updated documentation in most cases

These perks can be attractive, especially if your financial situation has become more complex since your original mortgage.

Potential Drawbacks of Not Switching

The key risk of sticking with your existing lender is missing out on more competitive rates. Many lenders reserve their lowest rates for new customers, and internal product transfers may come with fewer incentives. Other limitations include:

• Higher interest rates than new customer offers
• Limited product choice
• No opportunity to restructure your mortgage (e.g., extend term or borrow more)
• Risk of moving onto a Standard Variable Rate (SVR) if no action is taken

SVRs are typically much higher than fixed or tracker rates. If your fixed rate ends and you don’t take action, your repayments could increase significantly.

For more information about how remortgaging works, visit our Remortgage page.

Should You Compare Remortgage Options?

Yes. Even if you intend to stay with your current lender, it’s worth reviewing what the wider market has to offer. Remortgaging allows you to:

• Lock in lower rates with other lenders
• Adjust your mortgage term or repayment type
• Release equity for home improvements or other goals
• Move to a fixed-rate deal for payment stability

Remortgaging may involve more paperwork and time, but the potential savings can be significant over the life of your mortgage.

Comparing the Two: Which Is Right for You?

Choosing between a product transfer and remortgaging depends on your individual needs, timeframes, and long-term financial goals.

If you’re short on time or concerned about your credit profile, a product transfer could be the most practical option. But if your priority is securing the most competitive rate on your home loan, remortgaging may deliver better long-term savings even with the upfront fees.

We recommend speaking with a qualified adviser who can compare both internal and external options with no obligation. Use our tool to Find Mortgage Advisers and receive impartial support.

Mortgage Compliance Considerations

Under FCA regulations, mortgage advisers must recommend the most suitable product based on your personal circumstances. This includes reviewing the full market and disclosing any limitations if they do not offer whole-of-market advice.

If your adviser only suggests staying with your current lender, ensure that:

• They’ve compared other suitable deals
• You’ve been informed of potential cost differences
• Any incentives or broker limitations are transparently disclosed

Mortgage compliance is designed to protect consumers from overpaying or choosing unsuitable products. If you’re unsure, request a product comparison and rationale in writing.

When Staying Put May Be the Best Option

There are situations where sticking with your existing lender makes financial sense. These may include:

• You’re near the end of your mortgage term
• Your income has reduced, or your credit score has declined
• You want to avoid new underwriting due to self-employment or recent changes
• Your current lender offers a highly competitive product transfer deal

Still, you should always compare offers to ensure you’re not missing better options. Even a 0.2% interest rate difference can add up to thousands of pounds over time.

How to Make the Right Choice

Deciding whether to stick with your current mortgage lender or switch depends on your goals, finances, and available offers. Here’s a simple checklist:

1. Know when your deal ends and your SVR begins
2. Compare your lender’s product transfer options
3. Request external remortgage quotes
4. Review fees, savings, and repayment flexibility
5. Get advice from a qualified broker

At Connect Mortgages, we offer independent, whole-of-market advice to help you make the right decision. If you’re a mortgage adviser looking to support clients in these decisions, you can “Join our Mortgage network” and access a broad panel of lenders and tools.

Related Reading and Support

Explore more helpful content to guide your mortgage decisions:

• Fixed or Variable Mortgage?
• What Happens When a Fixed Rate Ends?
• Mortgage Repayment Calculator

Find Mortgage Advisers

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