Compare Remortgages Online
There are a number of different types of remortgage options to choose from, including:
Fixed rate - rate is fixed for a specified period, so cannot be affected by base rate changes and is the same month on month until the end of the fixed rate term
Tracker - tracks the Bank of England rate, so can go up or down
Discounted - Usually has a period of two or three years where you pay less interest
Offset - Offset the mortgage with any savings you have and pay interest on the difference
The two most basic points to consider are:
- Which type of interest rate deal to choose
- Which method of payment to use
Once you have decided which type of deal to go for, one of the main things to think about when you compare remortgages is the rate of APR attached to the loan, and also any setup fees; a low APR may actually turn out to cost you more in the long run if there are huge set up fees.
Repayment mortgages involve simple monthly repayments consisting of both the interest owed, as well as a percentage of the initial loan. Assuming all repayments are kept up with, the customers is is largely guaranteed to own the property outright at the end of the period.
Interest only mortgages allow customers to simply pay off the interest every month, and the loan itself is not repaid until the end of the mortgage. These agreements may be more favorable for first time buyers, as their monthly repayments are often comparatively smaller initially.
It is also worth considering the additional costs associated with remortgaging your property, such as:
- Closing down fee on your current mortgage lender – this has been reduced in recent years.
- Legal fees and a valuation – this is often refundable.
- Arrangement fees – the cheapest deals often have the highest arrangement fees and it is therefore worth carefully weighing up these costs