How We Helped a Worthing Homeowner Save £9,000 on Their Remortgage
When your mortgage deal is coming to an end, staying with your existing lender can seem like the simplest option. But that doesn't always mean it's the most cost-effective.
A homeowner in Worthing contacted Springate Mortgages because they were concerned about rising mortgage interest rates and what their monthly payments might look like when their existing deals expired.
Their situation was complicated by having two parts to their mortgage, each with a different deal end date. By looking carefully at the timing and considering alternatives to staying with their current lender, Jonathan developed a plan that ultimately saved the client £9,000 over their new fixed-rate deal.
The Challenge: Two Mortgage Deals Ending at Different Times
The client found Springate Mortgages through Google. Their main concern was the possibility of facing significantly higher monthly payments when their existing mortgage deals came to an end.
However, their mortgage wasn't straightforward. It was split into two parts, with different interest rates and different end dates. One part was on a particularly low rate of just 1.18%. The challenge was finding the most cost-effective way to deal with both parts without unnecessarily giving up the benefits of the existing arrangement.
Simply renewing each part as its deal expired wasn't necessarily the best approach. Jonathan needed to consider the timing of both mortgage deals, the cost of moving to a new lender and the risk of interest rates increasing further.
How Springate Mortgages Helped
Looking at the Overall Cost, Not Just the Interest Rate
Jonathan started by reviewing both parts of the mortgage and comparing the available options. Rather than immediately arranging a new deal for the first part to expire, he calculated that it would actually be cheaper to let this portion move temporarily onto the existing lender's variable rate.
Although this meant paying a higher rate on that portion for four months, it would allow both parts of the mortgage to be moved together when the larger mortgage deal ended. This approach avoided treating the two parts separately and allowed Jonathan to consider the overall cost of the mortgage.
Securing a New Deal Before Rates Increased Further
Another important consideration was when the client could secure a new interest rate. By moving to a different lender, Jonathan was able to arrange a deal earlier than the existing lender's renewal window would have permitted.
This proved particularly valuable because mortgage interest rates increased further after the new deal had been secured.Had the client waited until their existing lender allowed them to renew, the available rates would have been more expensive. By acting earlier, Springate Mortgages secured a more favourable deal before those increases took effect.
Taking Care of the Remortgage Process
Alongside arranging the mortgage, Springate Mortgages also assisted with the legal work involved in moving to the new lender. This meant the client had support with the wider process rather than having to manage the mortgage and legal arrangements independently.
The Outcome: £9,000 Saved Over the Fixed-Rate Period
By considering the mortgage as a whole, rather than simply renewing each part separately, Springate Mortgages helped the client save £9,000 across their new fixed-rate period. The saving came from two important decisions. First, identifying that temporarily moving one part of the mortgage onto a variable rate could work out cheaper overall.
Second, securing a new mortgage deal before further interest rate increases. It was a good example of why timing and the overall cost of borrowing can matter just as much as the headline interest rate.
At Springate Mortgages, we take pride in doing things differently
Straightforward advice
We keep it simple, clear, and honest - no complicated language or hidden agendas.
Stress-free approach
From paperless processes to quick, efficient communication, we make the mortgage process easy for you.
Personalised service
We understand that every client is unique, so our advice and solutions are tailored to your circumstances.
Proactive support
Whether it’s monitoring interest rates or liaising with lenders and solicitors, we’re with you every step of the way.
Why clients choose us
We’re proud to share the stats that reflect our commitment to great service:
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Why should you choose us? Because we get it.
Buying a home or remortgaging isn’t just a financial decision - it’s a life decision. And we’re here to make it as smooth, stress-free, and rewarding as possible.
