Entries Tagged 'remortgage' ↓

Remortgaging can help save upto £100s each month. To make sure you get the best deal, remember these points and suggestions

1. When does our current mortgage deal expire?

Some mortgages have a time frame such as two years in which there are penalties for moving the account. Make sure you prepare for switching the mortgage as soon as the introductory rate ends. There is no point in paying a higher rate for even a short time.

2. Existing mortgage dealer.

What remortgage deal can your existing mortgage dealer offer? Often it is easiest to remortgage with your existing mortgage dealer. Especially, if you have difficulty proving sufficient income to new mortgage dealers. Another advantage of staying with your existing lender is that there are unlikely to be any supplementary fees.

3. How equity do you hold?

It is worth having a rough estimate of how much the house value is compared to the outstanding loan. If the house price has increased and you own a higher % of the house, you may be able to get a better mortgage deal. This is especially true if you got a 100% mortgage
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Negative equity means that the house is worth less than the value of your outstanding mortgage debt. Negative equity in the UK, was common in the early 1990s when house prices in the UK, fell by upto 15% in one year. This creates severe problems for people who need to sell their house. Even if they sell the house, they will still owe money to the bank who lent them their mortgage.

If you find yourself with negative equity you may still wish to try and remortgage to find a better rate of interest. It is still possible to remortgage, however, it will be more difficult.

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