Mortgage Information - Switching your Mortgage

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Switching Your Mortgage

Lenders are constantly competing so you may be able to reduce the cost of your mortgage by switching to a new lender, but you may have to pay all the costs of carrying out the switch.

These costs may include legal, land registry fees, valuation, arrangement fees, discharge fees, deeds fee, early redemption fees and mortgage indemnity insurance premium charged by the lenders, but the savings can be substantial.

For more in-depth information on switching your mortgage, please see our new guide to Switching Your Mortgage.

Switching mortgages is considered as a new loan and if you ran in to financial difficulties, you would be entitled to less help from the state.

If you want to remortgage fill in our online form and an adviser will contact you with the best deal for you of look at our online list of mortgage providers.

For more information:

• When should a borrower switch their mortgage?
• Switching your mortgage loan – types of mortgage
• Which mortgage should I switch to?
• What costs are involved in switching your mortgage?

To Borrow

There are three main factors influencing the amount you borrow, when you take out a mortgage.

The price of the house you wish to purchase, and the amount you are able to borrow restricts your choice. Try our online borrowing calculator.

The value of the house you decide to buy. The lender has the property valued and usually does not lend you the full amount, the maximum they lend is about 90 to 95 per cent of the property's value. Try our mortgage wizard to help you get the best mortgage lender for you.

The amount you are able to pay, which will be dependent on your gross salary.

Cost of Your Mortgage

The table below shows the amount you can expect to pay each month for each £1,000 of mortgage loan depending on the term of your mortgage and the interest rate.

Different lenders use different methods to calculate your payments, and so the values will not be exact.

Monthly mortgage payments for each £1,000 of mortgage loan.

Interest Rate % PA	Repayment Mortgage With term of:					Interest only Mortgage
	5	10	15	20	25	Any Term
1%	£17.08	£8.75	£5.98	£4.60	£3.77	£0.83
2%	£17.51	£9.19	£6.42	£5.05	£4.23	£1.65
3%	£17.93	£9.63	£6.88	£5.52	£4.72	£2.47
4%	£18.36	£10.07	£7.35	£6.01	£5.23	£3.27
5%	£18.78	£10.53	£7.83	£6.53	£5.77	£4.07
6%	£19.21	£11.00	£8.33	£7.06	£6.33	£4.87
7%	£19.65	£11.47	£8.84	£7.60	£6.91	£5.65
8%	£20.08	£11.95	£9.37	£8.17	£7.51	£6.43
9%	£20.52	£12.44	£9.90	£8.74	£8.12	£7.21
10%	£20.95	£12.93	£10.44	£9.33	£8.75	£7.97
11%	£21.39	£13.43	£11.00	£9.93	£9.39	£8.73
12%	£2184	£13.93	£11.56	£10.54	£10.04	£9.49

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