Remortgaging From Secure Trust Bank

Why People Remortgage From Secure Trust Bank

Borrowers choose to leave Secure Trust Bank for a range of reasons:

• Specialist pricing premium — Secure Trust Bank's rates tend to carry a premium over mainstream lenders, reflecting the complexity of the borrowers it serves. If your circumstances have simplified, this premium may no longer be justified
• Costly revert rate — once your initial deal ends, the standard variable rate can be significantly higher than competitive fixed deals available elsewhere
• Limited product flexibility — as a specialist lender, the range of available products may not cover features you now need, such as generous overpayment facilities or offset options
• Improved financial position — if your credit score has recovered, your income has stabilised or your loan-to-value has dropped, mainstream lenders are likely to offer you substantially better terms

Secure Trust Bank served a purpose when your mortgage needs were more specialist. As your financial profile evolves, so should your choice of lender.

Secure Trust Bank Rates vs Mainstream Lenders

Secure Trust Bank's mortgage pricing sits above mainstream levels, reflecting the additional risk associated with specialist lending. Fixed rate products from Secure Trust may be 1% to 3% higher than equivalent deals from high street banks, while the SVR can exceed 8%.

To illustrate the impact, consider a £220,000 mortgage. At a Secure Trust SVR of 8.5%, monthly repayments on a repayment basis over 25 years would be approximately £1,690. A mainstream fix at 4.5% would bring that down to around £1,220 — a saving of £470 per month or over £5,600 per year.

Even if you do not yet qualify for the very best mainstream rates, near-prime lenders may offer deals that are considerably cheaper than Secure Trust Bank's current pricing. A broker can assess exactly where you sit and find the most competitive option.

How to Remortgage From Secure Trust Bank

The process of switching away from Secure Trust Bank is the same as any standard remortgage:

• Check your current terms — review your outstanding balance, the rate you are paying, when your deal ends and whether any early repayment charges apply
• Assess your current profile — obtain your credit reports from all three bureaux to understand how lenders will view you. Note any improvements since you first applied to Secure Trust
• Engage a whole-of-market broker — they can compare deals from mainstream, near-prime and specialist lenders to find the best fit for your circumstances
• Submit your application — the new lender will conduct income verification, a credit assessment and a property valuation
• Complete the switch — a solicitor handles the legal transfer, redeeming your Secure Trust mortgage and registering the new charge

Plan to start the process three to six months before your current deal expires. This gives you time to secure an offer and avoid falling onto the SVR.

Things to Check Before Leaving Secure Trust Bank

Before committing to a move, review these important points:

Early repayment charges — Secure Trust Bank may impose ERCs during your initial rate period, typically ranging from 1% to 5% of the outstanding balance. Calculate whether the long-term savings from switching outweigh any upfront penalty.

Credit file improvements — if you originally needed a specialist lender due to credit issues, check whether those adverse markers have now aged or been removed. This directly affects which mainstream deals you can access.

Income documentation — ensure you have up-to-date evidence of your income ready for the new lender. If you are self-employed, at least two years of accounts or SA302s are usually required.

Property valuation — your property's current value determines your loan-to-value ratio, which in turn affects the rates available to you. If your home has increased in value, you may qualify for more competitive rate bands.

Total cost of the new deal — look at the full picture including arrangement fees, valuation charges and legal costs, not just the interest rate. Free-legals remortgage packages from mainstream lenders can reduce your switching costs significantly.

Why Using a Broker Helps When Leaving Secure Trust Bank

Transitioning from a specialist lender to the mainstream market is where a broker's expertise is most valuable.

A broker who regularly handles specialist-to-mainstream transitions knows which lenders take the most favourable view of borrowers who previously held specialist products. They understand that your need for a specialist mortgage was specific to a point in time and can present your application to highlight the improvements in your circumstances.

If your profile falls between specialist and mainstream — the so-called near-prime space — a broker's knowledge of this market segment is invaluable. They can identify deals that you would not find through comparison websites and avoid wasting applications on lenders unlikely to approve you.

With most brokers paid by the lender on completion, the cost of this expert guidance is typically nil. Given the potential savings of hundreds of pounds per month, it is well worth taking advantage of their expertise.