How to Remortgage With One’s Current Lender?

Remortgaging can save homeowners thousands of pounds over the term of their mortgage, allowing them to avoid hefty interest hikes and to take advantage of attractive competing offers and texas cash out refinance. While many borrowers assume that a remortgage requires them to go with a competing financial institution from the one they are currently with, the truth is that staying with one’s current lender could be more advantageous. Many lenders offer loans to current borrowers that are not only designed to maintain their customer base but can also be more competitive than what is on offer from other lenders. Staying with one’s current lender, however, requires a bit of extra research as many of the best deals for existing customers are not published online. With this in mind, this article will look at the advantages of staying with one’s current lender, and how to find the best mortgage deals from them.

Advantages of staying with a current lender

Banks are always keen to make sure they do not lose business to the competition. Since the mortgage market is so profitable, banks are mainly trying to make sure they retain their current customers through competitive rates that are exclusive to existing borrowers. Many people remortgage their property once their fixed-rate term ends or when particular introductory periods cease, after which they will likely be subject to a higher standard rate. While these standard rates usually mean greater revenue for the lender, that lender is also aware that they will see no increased revenue if the borrower chooses to take his or her business to another bank. As such, it is often worth one’s efforts to find out whether one’s current bank has any special deals on offer to existing borrowers. Fees and other charges for remortgaging with one’s existing bank tend to be lower than they would be if one chose to go with another lender.

The advantage to remortgaging with an existing lender goes well beyond saving money, however. By staying with one’s current financial institution, one can often avoid going through a lengthy interview and underwriting process. The Home Loans Houston will almost immediately be switched to the new investment without the applicant having to prove his or her income level. In general, the entire process is much faster with an existing lender. Since the lender already has much of the borrower’s financial information on file, there is often little need to fill out lengthy application forms. While switching to a different lender could take up to a month, if a borrower stays with his or her current lender the process can usually be completed within a week. In addition to this speedy process, lenders will often allow existing customers to take out additional funds at rates exclusive to current borrowers. These funds can be used to consolidate debts or perform improvements on one’s home, thus raising the value of the property should he or she choose to sell it in the foreseeable future.

How to remortgage with an existing lender

The main problem with remortgaging with one’s current financial institution is that the process often requires a more significant amount of research than it would if one chose to go with a different bank. The reason for this is that even though banks want to retain their current customers, they are obviously not keen on too many of those customers paying less on their mortgages. As such, many lenders do not publish their remortgage rates for existing customers online, but this does not mean that such exclusive standards do not exist. The best way to find out what one’s bank can offer to current customers is to first look into independent mortgage comparison sites. Afterward, contacting one’s bank directly will be the best way of finding out what options are available. It should be kept in mind, as well, that since these rates are not online, the application will often have to be made over the phone or in person at a local branch.

Banks are eager to reward loyalty to existing customers with competitive remortgage options that could save borrowers thousands of pounds. Such offers, however, can be a little more difficult to find than those from other financial institutions. As such, borrowers would be wise to invest the time and effort to discover what exclusive rates could be available to them from their current lender.