Don't secure your new deal until you have seen all the options available from all lenders
If your current mortgage deal is due to come to an end, or has already finished, then remortgaging could be a way to secure a new deal whilst potentially saving money on your monthly repayments.
When your original mortgage deal has come to an end there are a few options available:
· Do nothing and let your mortgage revert to a Standard Variable rate product.
· Stay with your current lender and chose a new product.
· Remortgage to a new lender and take a new product out at the same time.
Remortgage frequently asked questions
Can I borrow more whilst remortgaging?
You may be able to apply to your current or new lender to borrow more money as part of your remortgage application. This will however be dependent on the available equity within your home, the reason for borrowing and subject to affordability assessments.
How far in advance of my deal ending do I need to look at remortgage deals?
Typically, a remortgage can take 4 to 6 weeks to complete and so starting your search around 3 months before your current deal expires should allow enough time for you to complete an application and have your mortgage transferred on to a new deal before moving on to your current lenders standard variable rate.
I am still fixed into my mortgage deal but my rate is much higher than my family or friends, can I remortgage to a lower rate?
Depending on what interest rates were like at the time you took your mortgage out, there may now be new lower interest rates available. That been said however one big cost to factor in is any early repayment charges associated to your current deal. These often remove any overall financial benefit that could be made from remortgaging. As your mortgage advisor I would factor these in and provide you with a recommendation based on the overall cost, even if this means retaining your current deal.
Can I make changes to my mortgage when remortgaging?
Absolutely, as part of our discussions I would work with you to establish your overall goals and objectives which I would then build into my research and recommendations. Many clients will look to make amendments to their current mortgage as part of a remortgage, typically these changes include moving from interest only to capital repayment, changing the mortgage term or changing the size of their mortgage by borrowing more or paying some of their mortgage back.
Will it cost me anything to remortgage?
Mortgage providers will often have remortgage specials available which include free standard legal work, valuation and no product fee. It is worth considering however that depending on your circumstances, including the loan amount and loan to value, it may be financially beneficial to pay a fee to secure a lower interest rate.