Remortgaging From Handelsbanken

Why Do People Remortgage Away From Handelsbanken?

Handelsbanken attracts a loyal client base, but there are common reasons why borrowers choose to look elsewhere at remortgage time:

• Rate transparency — Handelsbanken does not advertise its mortgage rates publicly. While this allows for individually tailored pricing, it can make it difficult to know whether you are getting a competitive deal without actively comparing the market.
• Branch-dependent experience — Because each branch operates semi-independently, the quality of service and the rates offered can vary from one branch to another. If your local branch does not offer a competitive retention deal, you may find better terms elsewhere.
• SVR reversion — As with all lenders, your rate will revert to the Handelsbanken standard variable rate once your deal period ends. Moving onto the SVR almost always means paying more than you need to.
• Mainstream needs — If your circumstances are relatively straightforward, you may not need the bespoke approach that Handelsbanken offers and could benefit from the sharper pricing available from high street banks or building societies.
• Digital expectations — Handelsbanken's model is built on face-to-face relationships and local branch banking. If you prefer a more digital experience with online account management and app-based tools, other lenders may better meet your expectations.

Handelsbanken Rates and Standard Variable Rate

Handelsbanken takes a different approach to mortgage pricing compared to most UK lenders. Rather than publishing a rate card, the bank allows each branch to set rates individually based on the client's circumstances and relationship.

How Handelsbanken sets rates

Your mortgage rate with Handelsbanken will be influenced by several factors, including your loan-to-value ratio, the size of your mortgage, the type of property, your income and financial profile, and the overall banking relationship you hold with the branch. This means that your rate may not be comparable to what another Handelsbanken client is paying.

The Handelsbanken SVR

Once your fixed or discounted rate period expires, you will move onto the Handelsbanken SVR. Because the bank does not heavily market its mortgage products, some clients are caught off guard by the increase in payments when their deal ends. It is important to check your mortgage documentation or contact your branch to find out exactly what your SVR will be.

Market comparison

In a competitive mortgage market, rates from mainstream lenders and specialist providers are often significantly lower than what Handelsbanken charges on its SVR or even on new deals. The personalised service is valuable, but it is worth quantifying exactly how much you are paying for it in rate terms.

How to Remortgage Away From Handelsbanken

Remortgaging from Handelsbanken is a straightforward process, similar to switching from any other lender:

• Speak to your branch — Contact your local Handelsbanken branch to confirm your deal expiry date, current SVR, and any early repayment charges. They may also offer you a retention deal at this stage.
• Compare the market — Research mortgage rates from other lenders, either independently or through a broker. Make sure to compare on a total cost basis, including arrangement fees, valuation costs, and any cashback offers.
• Prepare your documents — Gather your proof of income, bank statements, details of your existing mortgage, and information about your property. Having everything ready will speed up the application process with your new lender.
• Submit your application — Apply to your chosen lender and await their decision. They will carry out affordability checks, credit searches, and a property valuation as part of the process.
• Instruct a solicitor — A solicitor or conveyancer will handle the legal transfer of the mortgage charge. Many remortgage deals include free legal services as an incentive.

The process typically takes four to eight weeks, though this can vary depending on the complexity of your case and the speed of all parties involved.

Things to Check Before Leaving Handelsbanken

Before making a final decision to remortgage away from Handelsbanken, consider the following:

Retention offers

Handelsbanken may offer you a competitive new deal to stay, particularly if you have a strong banking relationship with your local branch. Always compare any retention offer against the best deals available in the wider market before deciding.

Service considerations

If you value having a local branch manager who knows you personally and can make lending decisions quickly, think about whether you will miss this when moving to a larger, more impersonal lender. For some borrowers, the relationship is worth a modest rate premium.

Business banking links

Many Handelsbanken mortgage clients also use the bank for business banking. Check whether your personal mortgage is linked to your business banking relationship in any way that could be affected by moving the mortgage.

Future borrowing needs

If you anticipate needing additional borrowing in the future, such as a further advance, buy-to-let mortgage, or business lending, consider whether Handelsbanken's flexible approach might be more valuable to you in the long term than a slightly lower rate now.

Early repayment charges

As with any mortgage, check whether you are still within your initial deal period and what charges would apply if you leave early. Only proceed if the financial benefit clearly outweighs any penalties.

Why a Mortgage Broker Helps When Leaving Handelsbanken

A mortgage broker can be particularly helpful when remortgaging away from Handelsbanken for several reasons:

Transparent comparison

Because Handelsbanken does not publish its rates, it can be difficult to know where you stand relative to the market. A broker can provide a clear, transparent comparison showing exactly how much you could save by switching.

Matching the service level

If the personal service you received from Handelsbanken is important to you, a broker can recommend lenders who offer a similarly personal approach. Some building societies, private banks, and specialist lenders pride themselves on relationship-based service without the price premium.

Access to the whole market

A whole-of-market broker can search across hundreds of mortgage products to find the best deal for your specific circumstances. This is far more efficient than approaching individual lenders yourself, and ensures you do not miss out on deals you might not have found on your own.

Handling the process

If you have become accustomed to Handelsbanken managing your mortgage relationship proactively, a broker can fill a similar role during the remortgage process, keeping everything on track and dealing with any issues that arise.

Many brokers offer a free initial conversation to assess your circumstances and provide an indication of what you could save by switching away from Handelsbanken.