Remortgage allows you to change from your current mortgage provider and transfer over to a completely new provider. Most people take out a remortgage to save money on their monthly mortgage payments. Some people often consider remortgaging in order to raise extra funds for other purposes such as decoration, funding for building development, a holiday or even debt consolidation.
Is it easy to take on a remortgage?
Surprisingly moving your mortgage to a new provider has become quite straightforward and can often be painless. Mortgage rates have reduced over the years and thus encouraged mortgage owners to keep an eye on the market to take advantage of the savings to be made.
How can I save money with a remortgage?
The fundamental aspect of mortgage is the term and the interest rate that is applied throughout the duration, therefore should either of these influencing factors be reduced then so should the total amount you pay back.
What determines a remortgage?
In order for a new lender to take on the lending of your existing
property they are likely to need some assurances on a few key areas. Firstly
your home, the lender will take necessary step to determine the
value of the property, this is usually achieved via a formal valuation
of the property.
For obvious reason this is important as for a decreasing property value and with a high lending sum could prove to become a liability for the lender. Other areas such as applications and conveyancing will usually also be required.
Are there any fees involved?
You may recall there were many fees involved when you initially took out a mortgage but for remortgaging purposes there are a lot less. Some lenders will charge you a fee for the arrangement of the remortgage but more importantly your current provider may charge you an early repayment charge for switching the mortgage product. It is important for you to check with your current loan provider as to whether these charges will apply and if so how much. Once you have determined the true cost of switching a mortgage it is important to work out whether savings to be gained outweigh the outlay cost involved.
Do I have to change mortgage provider to save money?
Not necessarily, depending on where you are with the term of your
mortgage and the agreement particulars you have you could stay
with your current provider but switch to a different product bearing
a lower interest rate.
Here at mortgages-uk.eu we have tried to take the pain out of finding the best remortgaging deal for you. Click here for our latest mortgage offers or complete our Mortgage Enquiry Form and let us do all the work for you.
- Read your current mortgage agreement for early redemption penalties
- When looking for your new remortgage it is important to compare a similar product type to your current mortgage, for example fixed rate type.
- Increase in your property value will allow you to increase your mortgage value.
- Depending on your mortgage value it may not prove to be worthwhile to remortgage.
- Don’t switch if the cost of remortgage outweighs the savings.
- Keep the mortgage term the same as your current term, increasing your term will lower your monthly payments but will ultimately increase the overall cost of the mortgage.
- Don’t take the first company in the list, do your homework and speak to as many companies, brokers and agents as possible.
- Check the new mortgage lenders terms and conditions, take time to read the small print before you make any commitments
Where do I find the best remortgage deal?
Save yourself time and hassle by simply completing our mortgage enquiry form below and we will put you in touch with our FSA regulated mortgage brokers.