Coming to the end of your deal? Here’s how to change mortgage deals
If your mortgage deal is coming to an end, then the first thing you should do is get advice from a financial adviser. They will be able to help with switching mortgage deals and lenders to make sure you can afford the new mortgage rates. Here we cover some helpful questions and answers to help you understand what to do next if you're coming to the end of your mortgage deal.
Is your current mortgage deal with us coming to an end? If so you’re eligible to switch your mortgage deal to a new fixed rate. If your mortgage deal ends and you don’t switch, your current mortgage will move on to our standard variable rate (SVR) which could be higher than your current rate.
If you aren’t coming to the end of your deal yet, you may be able to switch early, but you may have to pay an Early Repayment Charge to exit your current deal.
Changing your mortgage when your current deal comes to an end should be straightforward. We’ll write to you before your current mortgage deal comes to an end to give you information on what to do next. This will include a form that you’ll need to sign and return, then we’ll issue a mortgage offer for your new mortgage.
An SVR mortgage means your payments can go up or down according to changes in interest rates which is determined by the Hodge. You won’t have any early repayment charges and you can overpay or redeem without penalty.
The current SVR is 8.35%.
There aren’t any legal or valuation fees and we don’t need to complete any credit or affordability checks. However, you will need to pay any product fee associated with the new deal and, once in place, new Early Repayment Charges may apply.
If you’re keeping your mortgage with us, then you’ll need to choose a mortgage deal from the same product family. For example, if you have a 50+ Residential Interest Only mortgage with us you need to choose another 50+ Residential Interest Only mortgage as they are part of the same product range.
Switching mortgage lenders will depend on your financial circumstances and the monthly payments you can afford to make. We recommend speaking to your financial adviser to understand your options.
We’ll write to you 90 days before your current mortgage deal comes to an end to let you know about the process of switching mortgages.
This will include an application form that you will need to sign and return. We will then issue a mortgage offer confirming details of your new mortgage deal and mortgage payments.
You will need to return the signed mortgage offer for the new mortgage deal to take effect.
If you know what mortgage deal you want and are comfortable that you don’t need financial advice, you can complete and return the form yourself. Make sure you understand the details of your new mortgage deal and the mortgage payments you’ll be expected to pay each month. If you’re not sure, speak to a mortgage adviser first, you can find more information about this below.
If you aren’t sure what mortgage deal would be suitable for you, you can return to your original independent financial adviser or visit www.unbiased.co.uk to find a new mortgage adviser. A mortgage adviser will look in detail at your current needs and circumstances to make sure this is the most suitable option for you.
By choosing to use a mortgage adviser you will be protected by the Financial Conduct Authority (FCA). If you choose not to use a mortgage adviser you will not get the same Financial Conduct Authority (FCA) protection that you would get with an advised service.
Your new mortgage deal will take effect as soon as the existing rate ends. If you are currently on SVR then we will switch the deal as soon as we receive the signed mortgage offer. For more information please call 0800 028 3746.
We always recommend that you speak to a financial adviser about your current mortgage deal and whether it’s worth switching mortgage providers or staying with the same lender. They will be able to advise on whether it’s worth changing your existing mortgage based on the current mortgage market and mortgage rates.