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Remortgage guide
When you remortgage you are
moving your
mortgage from one company to another.
Many mortgage lenders are quite happy for you to continue paying their standard
variable rate (SVR) after any special product has expired. Put simply, they make
more money this way. But remortgaging is an extremely simple process and not an
estate agent in sight! Don't think that remortgaging your home is complicated
and drawn out because this is far from the truth. As there is no chain to worry
about and no estate agent the process generally take around 4-6 weeks.
It's even simpler if you ask a
mortgage broker to take care of things. We have your interests at heart, so
we will find you the best deal and then help with all of the paperwork.
Why switch?
The main reason people remortgage is to save money. The surprising fact is that
such a high percentage of people do not
re mortgage! And there is no good reason not to,
with literally thousands of remortgage schemes available.
When your introductory interest rate ends you will normally be put onto the
lenders SVR, which is usually higher. They should write to tell you and some of
the better lenders will even offer some other products to consider. You are now
able to consider remortgaging. But wait, there is one important thing you need
to do first. Ask your lender what penalties you will pay by switching your
morgage away. Some early repayment charges apply after your special interest
rate has finished.
The remortgage process (simplified)
- Ask your lender what penalties you will pay by switching your mortgage away
- Contact a mortgage broker to see what the best deals are
- Fill in some mortgage application forms
- Get your mortgage offer (which your broker should check)
- Wait for a bit until the Solicitor tells you it has all gone through
- Think about how to spend that extra money each month!
Mortgage alterations
Remortgaging is also a good time to think about whether your mortgage needs
changing. Some people will not only choose a different interest rate but will
also change:
- the mortgage term - extend or reduce the mortgage term
- the amount borrowed - borrow some more money for home improvements or debt consolidation
- how flexible the mortgage is - build in the ability to overpay or use your savings to offset
- how it is repaid - change from interest only to repayment or vice versa
For more information, please complete our enquiry form or call 0800 316 5756 and speak to an adviser today.
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