for borrowers

A guide to switching your mortgage deal

When it’s time to think about your mortgage options

What is switching?

In mortgage terms, switching is simply swapping your existing mortgage deal to another.

Switching is straightforward if you aren’t planning any other changes to your mortgage, or borrowing any more money, as you won’t need to provide any further information on your income or outgoings.

When you keep your mortgage with The Cambridge, there is no application fee for any deal you switch to and our Mortgage Advisers will be happy to help find the right mortgage for you.

Can I switch to a new deal?

Yes – if you have a mortgage with no early repayment charges you can switch at any time.

Or, if your existing deal is coming to an end you can secure a new deal up to three months before. We’ll be in touch around this time inviting you to think about your options. 

It’s a good idea to check if your mortgage account has multiple parts, as not all parts may be coming to an end at the same time or have no early repayment charges. Please check your annual statement or call the team on 0345 601 3344. 

 

When can I switch?

Our switches take place on the 1st of the month. If you’re planning to switch to a new deal, you can switch up to 90 days before your current deal matures. Our mortgage team will need to have your instructions by the 10th of the month prior to the switch taking place. For example, if you want to switch on 1st April we’ll need everything with us by 10th March.

If you’re waiting for your existing deal to come to an end, you can switch on the 1st of the month that the deal finishes, or the following month. You’ll need to consider the impact of a lower or higher interest rate compared to your current payment and the date in the month your deal comes to an end.

 

What’s involved if I choose to switch?

Once you’ve made a decision to switch, we’ll give you a European Standardised Information Sheet that outlines the proposed changes and your new monthly payments. Remember all mortgage holders will need to agree to any changes.

We’ll confirm the date of your switch once we have all the information and documentation in place. We’ll then send you confirmation of the changes to your mortgage which you should read carefully.

 

What mortgage deals are available to me?

The choice of mortgages available to you is based on the latest confirmed valuation of the property we have. If your outstanding balance is less than 80% of the latest confirmed valuation, then you already have our lowest rates available to you.

If your outstanding balance is more than 80% of the latest confirmed valuation and you believe the value of your property has increased, you may want to consider a re-valuation. You’ll need to discuss this option with one of our Mortgage Advisers and going ahead will include a valuation fee.

 

Important things to consider

  • If you’re currently on our Variable Home Loan Rate this is guaranteed to be no more than 2% above the Bank of England Base Rate. If you switch from this to a new deal you’ll be unable to switch back at a later date
  • There may be a completion fee for switching to a new deal. If you plan to add the completion fee to your mortgage, interest will be charged on this from the day we process your request
  • Be aware that your new mortgage deal may have different features to your current one – you could lose features such as payment holidays and borrow back options
  • If you make any overpayments to your mortgage, or redeem your mortgage within the term of the new deal there could be early repayment charges, depending on the mortgage you choose
  • The mortgage deals displayed to you are offered subject to your acceptance of the Mortgage Terms and Conditions 

 

Where can I get further information?

You can use our mortgage selector to see which deals are available to you. You’ll need to enter your outstanding mortgage balance and the latest confirmed valuation figure we hold.

The Mortgage Team are happy to answer any questions you may have, simply call us on 0345 601 3344 and we can arrange for you to speak to one of our advisers.

 

If you’ve been invited to use our self-switch service

You may have heard from us offering you the option to self-switch. In short, this means you’re eligible to choose your own mortgage product if you feel comfortable doing so.

Use our mortgage selector to see the product options available to you by entering your latest confirmed valuation and outstanding balance. This information is provided in the letter/email we send you.

Please note: this is strictly an unadvised service and we won’t be able to recommend or help you decide if your chosen product is right for you. It also means you won’t get the same Financial Conduct Authority protection you would if you used our advised service.

 

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE 

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