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The broker has two deals with almost identical rates - Platform home loans (part of Co-Op), or NatWest which is my existing lender. There are a load of forms for the new lender but a £250 cashback offer.
I really hate forms so I'm trying to decide if it's worth £250. What else do I need to consider? Any disadvantages to switching Vs a new deal with existing lender?
It will come down to how much you save vs the hassle.
We've just changed, but were offered a much better rate so that even after a hefty fee we knocked 3 years off the mortgage by keeping monthly payment the same. Well worth the hassle.
Surely the form cannot take more than 2 hrs - that is £125/hr nice work if you can get it.
Or ask your existing lender to match the competition
For me it would depend how desperately I needed £250. Assuming the deals are identical otherwise.
Does a hard credit check bother you? Presumably new lender will need to, but existing won't.
Your current lender knows your risk and your property. It’s easy for them, a few clicks and you’ve got your new mortgage.
I assume with a new lender it isn’t 100% sure you’ll get the mortgage - this will be a new application.
If it was me I’d stick with current lender and save the hassle, especially if the new mortgage was cheaper and I was already saving money.
What are the overpayment rules for the existing lender? We switched to Nationwide for a £180k mortgage with 10% overpayment allowed pa. We then changed deals a few years later- although the mortgage amount was much lower, the 10% overpayment was still based on the initial £180k deal.
ask your existing lender to match the competition
Is the correct first step.