Switching your mortgage to another bank
Switching your mortgage to another bank is known as remortgaging. This is because you will have to get a new mortgage to pay off the old one. You can see a remortgage timeline here.
People will usually switch their mortgage to another bank to get:
A cheaper mortgage rate
Smaller monthly repayments
A longer mortgage term
To release equity you may have built up in your existing mortgage
To switch your mortgage to another bank you will usually need:
A good credit score
A good level of mortgage affordability
Can you switch your mortgage to another bank with bad credit?
Whilst it may be possible switching your mortgage to another bank with bad credit, this will all depend on the amount of equity you have in your property and what type of bad credit you have.
Bad credit could include:
A debt management plan
A home reposession
The process of switching your mortgage to another bank:
Switching your mortgage to another bank will involve a few key stages:
Checking your mortgage affordability
Before you decide to switch your mortgage to another bank you will want to know if you can afford a new mortgage with your current profile. Do you earn enough every month to cover your current mortgage? Will you earn enough to cover a new mortgage?
A mortgage broker may be able to analyse your finances and let you know if switching your mortgage to another bank may be beneficial to you.
Get a mortgage offer
Once you have established that you can afford a new mortgage. You will then want to apply for a remortgage through your mortgage broker or the mortgage advisor at the bank. The mortgage lender will analyse your finances to see if you can switch your mortgage to their bank.
If everything checks out they will offer you a new mortgage and then you can continue the switching process.
Get a conveyancer
A conveyancer is very important during the mortgage switching process. They will carry out all the legal work as well as deal with the funds being transferred from mortgage lender to mortgage lender.
A conveyancer will also be responsible for amending the deeds and title on the property with the land registry.
If the conveyancer gives the all clear and everything looks good then you may be able to switch your mortgage to another bank.
Switching your mortgage to another bank may be a more complex process than this guide makes it out to be You may want to seek mortgage advice when considering switching your mortgage to another bank.
A mortgage lender will let you know what products they offer when you want to switch your mortgage to them but a mortgage broker may be able to advise you on almost all the products on the mortgage market.