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
4. Is it worth switching Mortgage Type ?
When you get a remortgage it is not just an opportunity to get a better mortgage deal, it is also a chance to get a better type of mortgage for your circumstances. For example, if your income is volatile or you wish to try and pay off your mortgage earlier it is worth getting a flexible mortgage
See: different types of mortgages
5. Best Remortgage Quotes
There are various lenders who can search for the best remortgage quotes from a variety of lenders. Make sure you look at all the different charges, introductory rates, as well as the base interest rate.
6. Be wary of Deals which look too good to be true.
If a remortgage deal offers a very low introductory rate, be careful that they don’t tie you into a much higher rate, when the introductory period ends. This balloon deals caused a lot of problems in the US sub prime mortgage dealer.
7. Don’t pay over the odds for advice
Many companies find the cheapest quotes for free, therefore, it is not necessary to pay high fees to find the best remortgage quote. Don’t worry these firms that offer free price comparisons get a % commission for selling remortgage deals.
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[...] Remortgage. Just because it is difficult to get a new mortgage doesn’t mean you shouldn’t continue to try and get the best mortgage deal. Even now, the benefits of remortgaging and avoiding your bank’s standard variable rate is as great as ever. (Checklist for remortgaging) [...]
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