Do you need to remortgage your home? Are you feeling overwhelmed by the process? You’re not alone! With so many options and factors to consider, it can be difficult to know where to start. But don’t let that stop you from potentially saving thousands of pounds on your mortgage payments.
Here are our ‘Top Tips for a Smooth Remortgage Journey’, covering the different scenarios you may face when looking to remortgage your home:
- Know the dates. It is vital that you know the details of your current mortgage to make sure you get a new rate in place before the current one ends. This is important because the roll-on variable rate will often be substantially higher than the rate you are paying during the initial benefit period.
- Know your credit score. Your credit score is a major factor in determining the mortgage rates you’ll be offered, so it’s important to check your score before you apply. You can get a free credit report from various credit reference agencies, including Equifax and Experian. To find out more, you can download our free guide to understanding your credit score here.
- Use an experienced mortgage adviser to shop the market. Don’t settle for the first mortgage offer you receive. Compare deals from different lenders to find the best one for you. Remember, the lowest interest rate isn’t always the best option, as other factors, like fees and loan terms, can affect the overall cost. Working with a whole-of-market mortgage adviser will allow you to understand which options suit your circumstances the most.
- Consider your current mortgage provider. Your current lender may offer preferential rates to existing customers or a more streamlined process. A mortgage adviser will also be able to assist with reviewing this for you.
- Consider your property value. If your property has increased in value since you took out your original mortgage, you may be able to remortgage for a larger amount and potentially reduce your monthly payments.
- Be aware of early repayment charges. If you’re still within your original fixed term, you may be subject to early repayment charges if you remortgage. Make sure you factor this into your calculations when comparing deals.
- Consider the different mortgage rate options. A fixed-rate mortgage ensures your interest rate remains the same for an agreed initial term, so you know exactly how much you’ll be paying each month. A tracker rate, however, is variable – as it is linked to the Bank of England base rate, your mortgage rate will increase or decrease in line with this. You can also consider a discount rate or an offset rate. To understand more, you can download our guide to remortgaging here.
- Think about your future plans. If you’re planning on moving house or making improvements to your current property in the near future, it’s worth considering a shorter-term product. This way, you’ll have more flexibility and you won’t be tied in for too long a term.
- Read the small print. Finally, make sure you read the terms and conditions of any mortgage offer before you sign on the dotted line. This will help you avoid any hidden fees or charges and ensure you’re getting the best deal possible.
In conclusion, remortgaging your home can be a complex process, but with these top tips, you can navigate the journey with confidence. Remember, it’s always worth seeking independent financial advice from a whole-of-market mortgage adviser to help find the deal most suited to your requirements.
For more information, you can find our free guide to remortgaging here.
Please note: a mortgage is secured against your home or property. Your home or property may be repossessed if you do not keep up repayments on your mortgage or any other debt secured on it.