Remortgaging From Reliance Bank

Why People Remortgage From Reliance Bank

Borrowers move away from Reliance Bank for several practical reasons:

• Limited mortgage range — as a small ethical bank, Reliance offers a narrow selection of mortgage products, which means there may be better options available that suit your specific circumstances
• Rate competitiveness — smaller banks typically cannot match the pricing power of large high street lenders, so you may find significantly lower rates elsewhere once your initial deal ends
• Changing needs — if your financial circumstances have evolved — for instance, you want to borrow more for home improvements or adjust your term length — a lender with a broader product range may be better placed to help
• Service availability — Reliance Bank has a very limited branch network, and some customers find that larger lenders or building societies offer more convenient access to support

Choosing Reliance Bank was likely motivated in part by its ethical stance. If that matters to you, a broker can help identify other lenders with strong ethical credentials alongside competitive pricing.

Reliance Bank Rates vs the Wider Market

Reliance Bank's mortgage rates reflect the realities of being a small lender without the volume to negotiate the tightest pricing from the wholesale markets. Their fixed rates may sit 0.5% to 1.5% above the most competitive deals available from larger providers.

When your initial deal ends, the standard variable rate you move onto is likely to be in the region of 7% to 8%, which is broadly in line with other small banks but considerably above the best fixed rate deals currently available.

On a £180,000 mortgage, the difference between an SVR of 7.5% and a competitive fix at 4.5% could save you around £310 per month. Over a two-year fixed period, that amounts to savings of nearly £7,500 — money that could be put towards home improvements, savings or even charitable causes close to your heart.

Several building societies and ethical lenders — including Ecology Building Society and Triodos Bank — offer mortgages with strong social and environmental credentials at rates that may undercut Reliance Bank.

How to Remortgage From Reliance Bank

Switching away from Reliance Bank follows the same process as remortgaging from any other lender:

• Review your current mortgage — check your outstanding balance, current interest rate, remaining term and whether any early repayment charges apply
• Assess your priorities — decide whether ethical credentials are important in your new lender, or whether you are primarily focused on securing the lowest rate
• Speak to a broker — a whole-of-market broker can search across mainstream, building society and ethical lenders to find the best deal for your situation
• Apply for your new mortgage — the chosen lender will verify your income, assess affordability and arrange a valuation of your property
• Complete the remortgage — a conveyancer handles the legal transfer, settling your Reliance Bank mortgage and registering the new one

Most remortgages complete within four to eight weeks. Beginning your search three to six months before your deal ends gives you the best chance of a smooth transition.

Things to Check Before Leaving Reliance Bank

Before proceeding with a switch, review these key considerations:

Early repayment charges — if your initial rate period has not yet expired, Reliance Bank may charge a penalty for early redemption. Calculate whether the savings from switching outweigh any charges you would incur.

Ethical alternatives — if the Salvation Army's social mission was part of your reason for banking with Reliance, research other lenders with ethical commitments. Building societies, credit unions and specialist ethical banks may offer competitive rates alongside responsible banking practices.

Account administration fees — there may be a small fee payable when your Reliance Bank mortgage account is closed. Factor this into your overall cost comparison.

Linked accounts — if you hold savings or current accounts with Reliance Bank alongside your mortgage, check whether closing the mortgage affects any preferential rates or benefits on those accounts.

Credit file accuracy — review your credit report before applying elsewhere. Ensure all payments to Reliance Bank have been correctly recorded and that there are no errors that could affect your application.

Why Using a Broker Helps When Leaving Reliance Bank

A whole-of-market broker adds particular value when you are leaving a small, specialist lender like Reliance Bank.

If ethical banking is important to you, a broker can identify which mainstream and specialist lenders align with your values while also offering competitive rates. This saves you the considerable time it would take to research each lender's ethical policies individually.

Brokers also have access to deals that are not available directly to borrowers. Given that Reliance Bank's limited product range may have restricted your options previously, working with a broker opens up the full breadth of the market and ensures you are not simply swapping one narrow selection for another.

The service comes at no direct cost to you in most cases, as the broker is paid by the new lender upon completion. This makes it a genuinely risk-free way to ensure you secure the best possible deal.