123 Mortgages Mortgage Guide
Remortgaging
What is remortgaging?
Remortgaging is when you switch your mortgage to a diffferent lender with a lower interest rate. It's a good way of saving money providing you find the right deal.
Even a small reduction in your interest rate will translate into a saving of hundreds of pounds. However, before deciding to remortgage your home, it's essential that you're aware of the penalty charges you may have to pay for terminating your existing agreement.
Simply contact your mortgage provider, or an IFA, to add up the costs of switching mortgages there are so many variables involved that it's important that you get professional advice first.
How easy is it to check out?
Competition between lenders means that it's now easier than ever to secure a better deal on your mortgage. All you need to do is give your details to a mortgage broker or IFA and wait for them to approach you with the latest offers.
It's essential to shop around and make sure that you get at least three quotes before buying any financial product.
How do you choose the best deal?
A cheaper interest rate is the main thing to look out for when remortgaging your home - but make sure that you keep an eye out for any hidden catches.
Some deals tie you in to buying mortgage insurance, or feature penalties that ensure you'll stay with the lender after the special rate has expired. Obviously, there's very little point in switching mortgages to save money only to find yourself tied in to what transpires to be a more expensive deal!
Costs of remortgaging
Remortgaging carries with it unavoidable costs that you'll need to weigh up before making any decisions. For example, you'll need to pay for a valuation and solicitor's fees. Additionally, your prospective mortgage lender could charge you arrangement or application fees.
The costs could eventually add up to outweigh the amount you'll be saving so it's essential that your IFA, or mortgage broker, gives you a detailed estimate. Some lenders will pay towards the costs of switching mortgages in order to secure your business, but may charge a higher interest rate, so do weigh up the pros and cons carefully if you want to switch mortgages.
Mortgage Basics - basics regarding interest rate, exit penalities, proving income
Property valuation & survey fees - property valuations and expenses incurred buying a home
Getting a Mortgage - different ways you can go about arranging a mortgage
Mortgage Types - explanation of the different types of mortgage available
Mortgages for people with bad credit - info for people who have credit problems
Bad Credit Mortgage - more info on mortgages for bad credit
Remortgaging - information on switching your mortgage to another provider
Mortgage Calculator - basic mortgage repayment calculator
Useful contact information - useful contact information relating to mortgages
THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP PAYMENTS ON YOUR MORTGAGE.