When your deal ends, you face a simple but important choice: move your mortgage to a new lender, or stay with your current one. This guide explains remortgaging to a new lender versus staying put, weighing the savings, effort and convenience, so you can decide which is right for you.
The choice you face
At the end of your deal, your main options are to remortgage to a new lender, take a new deal with your current lender through a product transfer, or do nothing and drift onto the standard variable rate. The last is almost always the most expensive, so the real choice is usually between switching lenders and staying put on a new deal, as our guide to product transfer or remortgage explains.
Staying put: the appeal
Staying with your current lender through a product transfer is convenient. It is usually quick and simple, often with little paperwork, no new valuation or legal work, and lighter checks, which can help if your circumstances have changed. If your lender's new deal is competitive and you value a hassle-free switch, staying put can be an attractive option that keeps you off the standard variable rate with minimal effort.
Switching lenders: the appeal
Remortgaging to a new lender lets you access the whole market and find the most competitive deal, which can save more than staying put if your lender's offer is not the best. It also lets you change your mortgage, such as releasing equity or altering the term. The trade-off is more effort and a full application, but on a larger mortgage the savings from a better rate can make it well worthwhile.
Why loyalty does not always pay
It is worth knowing that loyalty to your lender does not always pay, because the deal they offer existing customers is not always their most competitive, and the standard variable rate certainly is not. Lenders rely on the convenience of staying put. Comparing your lender's offer against the wider market, yourself or through a broker, ensures you are not paying more simply for the ease of not switching.
Weighing effort against saving
The decision often comes down to weighing the extra effort of switching against the saving it brings. A full remortgage takes more time and involves a valuation and legal work, as our guide to how long a remortgage takes explains, though many deals include these free. If switching saves a worthwhile amount, the effort is usually justified, especially on a larger mortgage where small rate differences add up.
When staying put makes sense
Staying put can make sense when your lender's offer is genuinely competitive, when you value speed and simplicity, or when changes in your circumstances might make qualifying with a new lender harder. In these cases, a product transfer keeps you on a good rate with minimal fuss. The key is to confirm your lender's offer really is competitive by comparing it, rather than assuming it is the best simply because it is easy.
How to compare and decide
To decide, get your lender's best product transfer offer and compare it against the best deals available elsewhere, factoring in fees and the cost of switching, as our guide to the cost of remortgaging explains. If switching saves enough to justify the effort, move; if your lender matches the market and you value convenience, stay. A broker can do this comparison and recommend the better option.
A quick way to compare
A practical way to compare is to write down your current deal's end date and rate, your lender's best product transfer offer, and the best deals available elsewhere, then add in any fees and the cost of switching. Seeing these side by side makes the better option clear. This simple comparison, which a broker can also do for you, cuts through the noise and shows where you would genuinely be better off.
When switching clearly wins
Switching to a new lender clearly wins when another lender offers a noticeably better rate than your current one, when you want to change your mortgage in ways your lender will not offer, or when the savings comfortably outweigh the effort and any costs. On a larger mortgage especially, even a small rate improvement can justify the work of a full remortgage, making switching the better financial choice.
When staying put clearly wins
Staying put clearly wins when your lender's offer matches or beats the market, when you value speed and simplicity, or when your circumstances have changed in ways that might make a new lender's checks harder to pass. In these cases a product transfer keeps you on a competitive rate with minimal fuss. Convenience has real value, provided you have confirmed the deal is genuinely competitive rather than simply easy.
The hassle factor
The effort involved is a legitimate part of the decision. A full remortgage takes longer and involves an application, valuation and legal work, while a product transfer is quick and simple. For some people, a modest saving is not worth the extra effort; for others, especially on a large mortgage, it clearly is. Being honest about how much the hassle matters to you helps you weigh it fairly against the saving.
Using a broker to decide
A mortgage broker can compare your lender's offer against the whole market and tell you which option leaves you better off, taking account of rate, fees and the cost of switching. This removes much of the legwork and helps you make an informed choice. Given how much a mortgage costs over its life, using a broker to weigh staying against switching can be a worthwhile way to ensure you get a good deal.
The one thing to avoid is doing nothing, since drifting onto the standard variable rate is almost always the most expensive outcome. Beyond that, both staying put and switching are reasonable choices; the right one is simply whichever leaves you better off once the saving, the fees and the effort are all weighed up, so compare properly and then decide.
Make it a regular review
The best habit is to make this a regular review at each deal's end rather than a one-off decision. Markets and your circumstances change, so the lender who is most competitive this time may not be next time. Comparing your lender's offer against the market every time your deal ends, and choosing afresh, ensures you consistently stay on a good rate rather than slipping into inertia and paying more than you need to.
Treat each deal-end as a fresh decision rather than a default, and you will keep your mortgage on a competitive footing year after year instead of slowly drifting into paying more than the market asks.
In short
At the end of your deal, you can switch to a new lender, stay put with a product transfer, or drift onto the costly standard variable rate. Staying put is convenient and simple; switching opens the whole market and can save more. Loyalty does not always pay, so compare your lender's offer against the market, weigh the saving against the effort, and choose the option that leaves you genuinely better off.
Where to get help and next steps
Read our guides to product transfer versus remortgage, how much remortgaging costs, and how long a remortgage takes. This is general information, not mortgage or financial advice.