Remortgaging enables you to switch to a new deal without moving home and can enable you to save thousands of pounds...
Remortgaging is becoming an increasingly popular choice amongst homeowners who are looking to make all-important savings, particularly in the current economic climate. For many homeowners, remortgaging offers great value for money when their fixed, tracker or discounted contract ends. By remortgaging, you’ll be able to avoid your lender’s expensive default rate. Here at Happy Mortgage People, we know all about the ins and outs of remortgaging, so we’re here to share some of our top tips for a smooth, hassle-free remortgaging process.
1. Start the process early
It’s highly recommended to begin the process of remortgaging early, perhaps around 3 – 6 months before your current deal expires, as the majority of deals can be agreed upon in advance of an application.
Starting early means that you can lock in your new deal before your current one expires. By doing so, you’ll switch immediately onto your new rate and avoid your lender’s costly Standard Variable Rate (SVR).
Many lenders will permit you to lock in your new deal up to three months before it’s due to begin. So, by getting ahead of the game you can potentially secure a competitive rate now and avoid future price hikes, which is especially desirable in the context of our current cost-of-living crisis.
Bear in mind that the remortgaging process can take anywhere between a couple of weeks and a few months from the point of application. How long the process takes will depend entirely upon your individual circumstances and how complex your application is.
Remember that if your employment circumstances have changed since you entered into your initial mortgage, you may have to provide evidence of income, which can slow the whole rigmarole down considerably.
2. Take into account your circumstances
When you’re looking to remortgage your home, it’s important to consider whether or not your finances or lifestyle has changed considerably since you last took out your mortgage.
Pay rises or reductions at work, a change in your occupation, new arrivals to the family and any loans which you have recently taken out or paid off are all factors to take into account. Your new lender will carry out suitability checks, and these checks will take into account your income and outgoings in order to ensure you can keep up with future repayments.
3. Consider working with a mortgage adviser
Of course, the option is always there to go it alone and take care of your remortgage yourself.
In doing so, however, you sign yourself up to an arduous, lengthy task, and may be missing out on some of the most competitive deals on the market. You see, if you opt to DIY and go straight to your bank, it’s almost certain that you won’t be able to secure the best price.
Here at Happy Mortgage People, our brokers are industry experts and have a wealth of knowledge that will enable them to secure you the very best deal in line with your needs. Opting to work with a broker is particularly helpful in complex borrowing situations when a specialist lender may be required. If you’re self-employed, looking to remortgage a buy-to-let, or wish to remortgage in order to perhaps release equity, buy another property or pay off debt, using a mortgage broker is highly recommended.
4. Don’t automatically remortgage with your existing lender
In order to cut down on time and effort, you may well be tempted to remortgage with a new deal from your current lender.
As appealing as this may sound, however, we would advise against it. The mortgage market is so incredibly competitive, meaning you would be doing yourself a serious disservice if you didn’t consider a wider selection of lenders in order to seek out a more suitable deal.
Trust us, it’ll save you money in the long run. Of course, if you’re short on time, you can always employ the services of a mortgage broker and leave the arduous process of shopping around to them!
5. Consider the fees involved
When it comes to remortgaging your property, there typically tends to be a number of fees involved.
It’s incredibly important, therefore, that you don’t simply look at the rate, but instead consider the overall, total cost of the mortgage. Keep an eye out for the likes of Early Repayment Charges, Exit Fees, Valuation Fees and Legal Fees. If you’re working with an experienced mortgage broker, they’ll be able to explain the ins and outs of all of these costs to you in simple, easy to understand terms
Here at Happy Mortgage Company, we can make the process of remortgaging simple and straightforward. Get in touch today to speak to one of our excellent brokers.
