What is remortgaging?
Unlike a standard mortgage, remortgaging does not usually involve moving property – instead, it involves the transfer of a mortgage from one lender to another. The procedure for remortgaging is usually simpler and cheaper than setting up the initial mortgage for a house purchase. Remortgaging your home does involve some financial outlay, so it’s important to factor this into your decision and make sure that you understand the various costs involved. Bear in mind that you could save money in the long term by moving to a cheaper mortgage deal.
Whether you want move your mortgage from a tracker to the certainty of a fixed rate deal to keep your repayments stable, or simply want to find the lowest interest rate, taking some time to compare remortgage quotes can help you save money over the life of the mortgage.
What to look for when comparing low cost remortgage deals
It’s essential to bear in mind that getting the best low cost remortgage deal is not just about finding the lowest interest rate on the market. Another consideration is the cost of a mortgage over its whole term. Just because a product starts with a lower initial rate, don;t assume that this means it will necessarily be the most economical option over the life of the mortgage, or that it will suit your particular requirements.
- Bear in mind that if you are locked into your current mortgage for a set period of time, you may have to pay a penalty when you remortgage with another lender
- Remember to factor in arrangement fees, valuation fees and legal fees when deciding if a deal is right for you
- If you’re nearing the end of your current deal, it makes sense to research alternatives before you revert to a standard variable rate, which could be costly.
- You also need to consider all the other costs and charges that are involved in the process of switching mortgage deals.
Low cost remortgage criteria
Your ability to get a low cost remortgage is likely to be dependent on your specific circumstances. When considering a remortgage application, mortgage lenders will look at factors such as:
- How much existing equity do you have? - With high equity, your choice of low cost remortgage deals may be higher than that of someone who has less equity
- Do you have a stable income? Are you employed or self-employed?
- What is your credit history like?
Use the mortgage comparison tool above to compare low cost remortgage offers with a selection of market leading low cost remortgage deals available right now. The ever-changing range of remortgage deals available on a daily basis can make it difficult to find the right offer for you, so save yourself the effort and get over 5,000 personalised remortgage deals instantly.