Switching your mortgage deal

Mortgage switching explained 

Switching your mortgage is when you change your mortgage product. You can move your mortgage to a new lender - this is called remortgaging. Or you can switch your mortgage from one product to another, with the same lender. This is called a product transfer.   

When can you switch your mortgage 

You can switch your mortgage at any time. But to avoid paying early repayment charges (ERC), most people switch just before their current mortgage deal comes to an end.  
 

Switching just before your mortgage deal ends means you'll avoid being moved onto your lender's Standard Variable Rate (SVR). People generally prefer to choose a new deal rather than default to their lender's SVR. This is because SVR mortgages have a higher rate of interest, and your monthly repayments are more likely to change.  

Ways to switch your mortgage 

Get advice from a lender 

You can ask your lender for guidance. This is called an advised switch, and a mortgage advisor will look at your finances, your mortgage balance, and property value to suggest the most suitable product for you.  
 

Choose a new mortgage yourself 

You can choose a deal yourself without discussing your finances with your lender. This is called non-advised switch. Often you can do this online by finding a deal and following the lenders application process. 

If you choose a new mortgage yourself, you still have the right to complain or to compensation if anything else goes wrong with your mortgage. But you do lose some protections. Opting for a non-advised switch means: 

• You won’t be protected by the Financial Conduct Authority for assessing the suitability of the change.
• You won’t be able to complain to the Financial Ombudsman Service about this aspect of your mortgage deal. 
• You won’t be able to claim under the Financial Services Compensation Scheme about this aspect of your mortgage deal.