If your mortgage deal is coming to an end, you may be wondering whether to stay with your current lender or look elsewhere. Remortgaging in Brighton can be a good opportunity to review your options, but the right route depends on your circumstances, your current mortgage and your future plans.
Some homeowners choose a new deal with their existing lender, often called a product transfer. Others switch to a different lender through a remortgage. Both routes can have advantages, and both need careful consideration.
This guide explains what to think about before your mortgage deal ending date arrives, including standard variable rate risks, fees, affordability checks and timing.
What happens when your current deal ends?
Most fixed or tracker mortgage deals run for a set period. When that period ends, you will usually move onto your lender’s standard variable rate unless you arrange a new deal. A standard variable rate can change and may be higher than your previous rate.
This is why it is sensible to review your mortgage before the end date. Waiting until the last minute can limit your options and may create unnecessary pressure.
If you would like tailored support, our remortgage broker in Brighton page explains how we can help you explore suitable options.
Staying with your current lender
Staying with your current lender may involve choosing a new product from the same lender. This is commonly called a product transfer. It can sometimes be more straightforward because the lender already holds information about your mortgage.
In some cases, there may be fewer checks than switching lender, although this depends on the lender and whether you want to change the mortgage amount, term or repayment type.
The main benefit is convenience. However, convenience should not be the only factor. It is still worth checking whether the available product is suitable compared with other options.
Switching to a new lender
Switching lender may give you access to products that are not available from your current lender. A new lender will usually assess your income, outgoings, credit history and the value of your property.
This route can involve more paperwork, and there may be legal or valuation steps. Some remortgage products include support with these costs, but not all do, so it is important to look at the full picture.
A mortgage advisor Brighton can help compare staying and switching so you can understand the potential benefits, limitations and costs of each route.
Why the standard variable rate matters
A standard variable rate, often shortened to SVR, is the rate you may move onto when your current deal ends. It is set by the lender and can change. It is not always linked directly to the Bank of England base rate, although wider interest rate changes may influence it.
Being on an SVR may suit some people for a short time, but many homeowners prefer to review alternatives because monthly payments can be less predictable. If your mortgage deal ending date is approaching, it is worth checking your options early.
If you are considering a fixed-rate mortgage Brighton, our fixed-rate mortgage in Brighton page may help explain how fixed products work.
Early repayment charges and timing
Before making any changes, check whether your current mortgage has an early repayment charge. This is a fee that may apply if you repay or switch before the deal ends. The amount can vary, and in some cases it may be significant.
That does not mean you should wait until the final week. Many mortgage offers can be arranged in advance and completed when your current deal ends. The timing needs to be handled carefully so you avoid unnecessary charges where possible.
Remortgage advice Brighton can help you understand when to start reviewing options and how your current end date affects the process.
Fees, rates and the true cost
It is easy to focus on the interest rate alone, but fees also matter. Some products have arrangement fees, valuation fees or legal costs. A product with a lower rate but a higher fee may not always be the most suitable choice.
The right comparison should include monthly payments, product fees, incentives, remaining mortgage balance, term and how long you expect to keep the mortgage. Your future plans can affect what looks suitable.
For example, if you may move soon, flexibility could be important. If you prefer payment certainty, a fixed rate may be worth considering. Advice can help you weigh these factors without feeling rushed.
Affordability checks when remortgaging
If you switch lender, you should expect affordability checks. The new lender will look at your income, commitments and credit history. They may also check the property value and loan-to-value.
If your income has changed, you have taken on new borrowing, or your circumstances are different from when you first bought, this may affect your options. It is better to understand this early rather than close to your deal end date.
You can also learn more about local support on our mortgage advisor in Brighton and mortgage broker in Brighton pages.
How to review your options calmly
A good starting point is to check your current mortgage balance, deal end date, current rate, early repayment charge and remaining term. Then think about your plans for the next few years, including moving home, borrowing more or making overpayments.
From there, you can compare staying with your lender against switching. The aim is not to chase a headline rate, but to explore suitable options based on the full cost and your circumstances.
Our mortgages page provides more information about the mortgage services available through Mortgage Pro Sussex.
Your home may be repossessed if you do not keep up repayments on your mortgage.