Remortgage to Save Money

Remortgage to Save Money

Mortgage payments are the largest expense in a typical UK household. It consequently makes sense to ensure that you are getting the best deal possible on your home loan which method that you should remortgage if necessary.

If you are paying interest on your mortgage at the lender’s Standard Variable Rate (SVR) then you are probably paying more than you should be.

You should review your mortgage situation at the minimum once a year and if necessary use the sets of an independent advisor to give you an expert opinion on whether or not to remortgage to a different product.

Mortgage lenders are always looking to attract new customers and regularly offer discounts and other incentives to possible remortgage customers.

However, a remortgage is not always the best course of action to take, as they can come with hefty fees. consequently your first task after evaluating your existing home loan is to contact your current lender and find out if they will offer you a lower interest rate to stay with them.

Your current lender may be open to your proposal, especially if you tell them that if they cannot offer you a more competitive rate you will simply refinance to a different lender.

If your current lender agrees to your proposal, you may save yourself time and money by not having to switch to a different lender.

However, if they do not offer you a better deal, you should compare your current home loan to any other appropriate remortgage products on the market that you qualify for.

This is where an independent mortgage broker can help. Independent advisors have special software that can examine the complete remortgage market, saving you the time it would otherwise take to conduct the research on your own.

If you do decide to remortgage, remember to explain any fees that may become payable, such as application fees to the lender and broker and solicitor fees.

If the overall expense of paying these fees outweighs the benefits of a lower interest rate on the remortgage product, it may be a better idea to stay with your current product.

If you would like to remortgage your character, you should consequently perform a cost-assistance examination to ensure you make the right decision for the long-term.

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