Get Re-Mortgage Deals
Re-mortgages can be useful for many reasons, including:
- To make savings: If your original deal was taken out when interest rates were high, or your current deal has come to an end, you could well save yourself money by switching deals.
- Reduce your monthly payments: If you are not looking to take savings in the long term, but more to cut your monthly costs – maybe there has been a change in your income, you could switch to a longer loan period which would cut your monthly repayments
- Borrow more: If you need extra cash, maybe for home improvements like a new kitchen or bathroom or an extension, you could remortgage to release the money to pay for the work.
- Debt consolidation: If you have debts at high rates of interests, putting them onto your mortgage instead could save money.
There are a number of things to consider before deciding to pursue the course of a remortgage. Re-mortgages have many benefits for people who have come to the end of their interest rate deal term and wish to switch lenders in order to receive a lower rate of interest.
Firstly, you should speak to your current mortgage lender about your desire to remortgage. A one to one consultation with your current mortgage lender may enable you to clarify what aspects of your mortgage loan you are unsatisfied with. The most common reason for switching lenders or remortgaging is to save money.
Regardless of the type of interest rate deal you currently have, you should be able to remortgage. However, there are usually fees involved:
- Application or arrangement fees
- Early repayment charges (ERC)
- Valuation fee
- Legal fees
It is important to consider the additional costs involved in the re-mortgages process to ensure that remortgaging your property is a worthy venture in your current financial situation. You should use our comparison tables to find a mortgage lender and interest rate deal that will benefit you and your financial situation.
One of the first things you should consider when looking to remortgage your property is to think about which kind of repayment plan would best suit your financial situation. It is perhaps obvious that repaying monthly for twenty years will result in cheaper monthly payments than a 15 year deal.
There are three main things to consider:
- You should compare similar repayment types to better judge what each remortgage deal has to offer
- Keep the loan to value ratio in mind at all times when looking at different deals
- Are there any initial payments to make or any penalties that could be incurred