Remortgaging can offer you peace of mind, but can remortgaging save you money? Changing your mortgage or remortgaging means moving from your present mortgage to another mortgage. You do not have to change mortgage your lender should your present lender be able to provide you with a better deal than anywhere else, you can just switch over.
Reasons for Remortgaging
There are four key reasons for remortgaging:
- Your current mortgage deal is coming to an end and you do not wish to pay your current mortgage lender's standard variable rate as it is more than other offers from other mortgage lenders.
- You are on your mortgage lender's standard-variable rate and you wish to switch to a fixed rate or capped rate, or just pay a lower rate than you are paying.
- You wish to change to a more flexible mortgage should you be able to change your pattern of payments.
- You wish to free equity in your property given that there has been an increase in value. Of note is that there is a limit on the amount the lender is going to lend you dependent your income and property value. It is almost impossible to borrow more than 90% of your property's value in the present mortgage market.
Is it worthwhile remortgaging?
Do not just change to the cheapest remortgage deal available. In addition, you will need to consider the kind of deal that is most suitable.
To decide whether or not you could save money by remortgaging, you ought to check out all the switching costs involved.
The most easy way to work out whether or not you will make savings by switching your mortgage deal is to use our mortgage calculator. In order to use our remortgage calculator, you will need to know the following:
- Your present monthly mortgage payment
- The number of years remaining until the end of your mortgage
- The costs of changing from your present mortgage lender
Contact your current mortgage lender
Prior to changing to a new mortgage lender, get in touch with your existing one and offer that provider an opportunity to give you a better deal. Should you stay with your present lender you will not need a new valuation unless you are borrowing more and you will not need to pay any legal fees.
You ought to get independent mortgage advice and undertake your own research prior to remortgaging to ensure that you get a deal which suits you.
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