The process of switching mortgages is intended to be simple, although it’s not as easy as flipping a switch.
Despite this, the potential savings from a reduced interest rate and cash back bonuses can make it a worthwhile investment of your time.
Can I switch multiple times?
If you’re considering switching your mortgage, you’re likely looking to save on monthly repayments through a better interest rate and potentially receive cash back.
Since a 2016 EU directive, banks cannot retract a cash back offer for switching mortgages.
However, some banks have implemented a rule requiring customers to remain with them for two to three years before being eligible to switch back.
Despite these restrictions, it’s still possible to switch multiple times and take advantage of cash back offers.
How much can I save?
It’s not just about saving when switching mortgages, it’s also about earning. Based on a 2% cash back, the potential savings can be significant, although there are fees to consider.
While certain banks offer immediate cash back, they may have higher interest rates in the long run, which is not a concern if you plan on only being with them for a short period.
Switching multiple times can result in significant earnings, but it’s important to be mindful of mortgage approval timelines.
What is the process for switching mortgage providers?
The process is fairly straightforward, but it requires organization and prompt communication with the bank and solicitor.
Before beginning the process, gather all necessary documents and engage a solicitor who understands the process.
Having full mortgage approval is crucial, and variable rates are important to avoid fees for breaking a fixed rate.
- Apply for switcher mortgages at multiple banks simultaneously.
- Respond promptly to any queries from the banks.
- The bank will conduct a house valuation if they approve your application.
- Full mortgage approval will be granted, and the solicitor will handle the funds.
- Engage with your solicitor to sign documents for each bank you switch to.
- Repeat steps 5 and 6 within the allowable timeframe of the mortgage approval.
After switching mortgages and receiving cash back, you can immediately begin the process of switching again.
What other ways can I save money through switching?
In addition to switching mortgages, you can also save money by switching energy and TV/internet providers.
