Mortgages
Remortgage
How Remortgaging Can Save You Money
In its simplest form a remortgage means shopping around for a new mortgage deal product offering a lower interest rate or terms that are more competitive than your existing lender has available.
Even a small change in interest rate or a lower fee structure could mean saving hundreds of pounds.
When and How to Time Your Remortgage
Whilst you can do it at any point during your mortgage term, certain times would be preferential. Everybody should consider remortgaging when their current mortgage product expires, for example, when a fixed rate deal finishes and we recommend you start looking into the best options 6 months before your existing deal expires.
The majority of mortgage products have ERCs (Early Repayment Charges) for the duration of the initial introductory rate so the amount and timing of these must be taken into consideration when looking to remortgage.
Some other reasons to remortgage include:
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Raising money to fund home improvements
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Debt Consolidation
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Helping children with a deposit
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Buying a new car
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Transfer of equity – buying out someone else’s share of the property
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Funding a wedding
Product Transfer or Remortgage
Our advisers will consider and fully explain the merits of staying with your existing lender and doing a product transfer versus the typical remortgage process of going to a new lender to secure a new product.
It is usually easier to take a new product with your existing lender but this ease must be compared with the potential cost savings of moving to a new provider.
Both routes also have potential drawbacks, for example, your current lender may use a valuation figure for your property which is not a true reflection of its current value, giving you access to less favourable deals. Likewise, solicitors will be involved in a full remortgage process and this can easily cause delays.
