Should you Re-Mortgage ?
For the majority of people their mortgage will be their biggest financial commitment and it would be foolish to not spend at least a little bit of time finding the best product available.
For some people sticking to their current lenders SVR ( Standard Variable Rate ) may be the best option but if you do make sure that it is through choice and not through laziness or you could find that you have wasted a fortune in interest repayments.
Who Shouldn’t Re-Mortgage ?
The Lucky Ones – Those of you who are already on a great deal eg. Currently the Bank of England base rate is at an all time low ( 26/10/2016 ) and some people may find themselves on an old tracker rate product in this case there may not be a deal on todays market that comes close to what you currently have.
The Unlucky Ones – On the other hand you may be locked into poor deal by hefty ERC’S ( Early Repayment Charges ) in this case it would be foolish to switch products or providers until the incentive period had passed.
Nevertheless you should be ready to move when the time is right check the market 3 – 6 months before your deal ends and be ready to switch and save.
Be Prepared to Re-Mortgage !
Find out when the incentive period ends and start searching the market 3 – 6 months before this date, this will ensure you don’t slip onto your lenders SVR and waste money paying additional interest.
How much Equity do you need to Re-Mortgage ?
The best rates are reserved for those with the most equity if you currently own more than 40% of your property outright you should qualify for the best rates available on todays market.
What type of Re-Mortgage should I go for ?
The answer depends on your circumstances for example if you intend to move home a year down the line it would be foolish to take out a 2 year fixed rate deal with hefty ERC’s.
Contact a mortgage broker today and we will assess your situation free of charge.
What term should I choose ?
If however you are struggling to keep up with your repayments or you can see additional financial commitments on the horizon eg you have a baby on the way it may be possible to extend the term and reduce your monthly repayments. This should be treated with caution, extending the term will mean you pay considerably more in the long run.
Check the Fee’s !
Some deals boasting a great rate may include booking fee’s, arrangement fee’s, valuation fee’s and legal fee’s to name a few. On the other hand a product with a slightly higher rate may be fee free and could even offer cashback making it a better product for you a lot depends on how much you want to borrow.
Use a Mortgage Broker !