Should I stay with my existing lender or remortgage?

The Client

Tony, an accountant, approached us looking for the best deal for his mortgage as his fixed rate was due to expire with his current lender. He had been offered a new rate with his current lender but didn't know whether is was the best rate for him.

The Challenge

Tony believed his challenge was to find the best two year fixed deal which without having any advice is what he thought he wanted. Tony only knew what his lender was offering and was asking simply if there were any better rates available.

The Solution

As advisors, we always conduct a full review of circumstances to ensure not only the best rate is being offered but also the best mortgage product which can include many other features. After conducting a review with Tony, we discovered he had recently sold a buy to let property and had the proceeds of the sale sitting in a bank account. He didn't have any plans for the funds but also didn't want to re-invest them as he didn't feel he had the experience. We were able to recommend that he stayed with his existing lender, but instead of switching to a standard two year fixed rate product, we advised an Offset mortgage product which meant he could offset the interest he received on was due to pay on his mortgage in favour of not receiving interest on his savings. Given he interest he was receiving was signifcantly lower than he would have been paying, we saved Tony thousands of pounds over the course of his mortgage term helping him to pay his mortgage off faster. As an accountant, Tony loved the numbers and appreciated the advice!