Moving lenders pays off

Couple sat on the sofa holding a laptop computer
Published on 12 July 2023

When you are coming to the end of a fixed rate deal, most homeowners like the protection of knowing what their new monthly payment will be. Moving to another fixed rate product gives you this protection – however the mortgage market has changed a lot during the last two years. Fixed rates are now much higher than they were when most people fixed between 2 and 5 years ago! Staying with your existing lender – for ease, is likely to mean that you are missing out on a better rate elsewhere. So, can a mortgage broker help complete a remortgage and is moving lenders really worthwhile? 

At 177 Mortgages we have developed great relationships with a wide range of lenders. So, when it’s time to start looking for a new fixed rate mortgage using a mortgage broker can help find the best deal for you. Take a look at how we recently helped a customer with their remortgage to a fixed rate product with a new lender, and like all of our services – we didn’t charge them a fee. 

Client: Mr and Mrs H had been with their current lender for a number of years. They had renewed on a 2-year fixed rate with this lender a number of times.

Scenario: Their current fixed rate mortgage was coming to an end, and their current lender had quoted them a new rate and new monthly mortgage payment. Because of the increase in mortgage rates across the industry, they were surprised by the large increase in monthly payments that the new rate caused. So, for the first time ever they decided to contact a Mortgage Broker to see if there were cheaper options. 

Challenge:  They were looking to borrow on a like-for-like basis with an amount of £380,000. The property was valued at around £750,000 which made their low loan-to-value (LTV) around 50%. This meant that they qualified for the very best rates available from lenders. But they were hesitant about moving lenders and the time and effort that this would require.

Solution: After the client came to 177 Mortgages, one of our specialist team looked at their current lender’s deal and quickly confirmed that this was not the most cost-effective. But that it also carried a large lender fee. Our advisor then searched the market and presented Mr & Mrs H with the available options – including options that had no product fee. After they had selected the product that best suited their needs, we quickly processed their application with a new lender.

Outcome: As a result, we were able to save them £212 per month compared to the best deal that their existing lender had offered them. Remaining on the same term and fixing for the period that suited their circumstances. They were thrilled with the saving and also happy to allow us to contact them ahead of their review date. With our help, moving lenders was quick and easy and they were delighted with the significant saving. And with our help in the future, they now know that they will never have to pay more than they need to.

Using 177 Mortgages to find your help you remortgage when your current deal is nearing the end is fee-free. If you’re simply looking for a new fixed rate or your circumstances have changed, and you have more bespoke requirements.  Or perhaps you’re looking to borrow more money – get in touch with us today.

177 Mortgages and 177 Protect are open 7 days a week. We’re always happy to talk through your mortgage, specialist finance and protection needs in more detail. If you’d like to book an appointment or simply find out more information, please get in touch.

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