A remortgage is when you apply for a new mortgage but stay in your current home. You also might need to remortgage to take out some of your equity or move to a better mortgage deal.
When interest rates are low, lenders offer attractive remortgage deals. These might be tempting if you have had a mortgage for a while and want to save money on your monthly repayments. However, you will need to take a close look at your own finances and your current deal to know if it’s the right time to switch. This includes checking for any early repayment charges for leaving your current agreement before the tie-in period ends, as well as any charges and fees you’ll pay for the switch.
Things to think about
Remortgaging isn’t always the best option for everyone. You should take all these factors into account before assuming you will save more money with the new mortgage than it will cost you to get out of your existing one.
You may need to pay potential penalties you might face for early repayment.
Factor in fees or charges you might have to pay to secure your new deal. You may be asked to pay set-up and admin fees, along with conveyancing and valuation fees, though some lenders will offer a fee-free switch.
Remember to look at the overall repayment and benefit period.
You may be able to find a new mortgage deal with your current lender that works out cheaper.
If you have early repayment charges attached to your current mortgage, these charges may become payable if you remortgage before the lender’s tie-in period ends.
If you are moving to another deal with your current lender, legal and valuation fees may not apply, but any early repayment charges might
Have your paperwork ready
In comparison to your first mortgage, remortgaging is usually much faster and easier to complete. Having all your documentation ready can help speed the process up.
This might include recent:
P60 tax statement
proof of bonuses or commission
business accounts or tax returns if you’re self-employed
Get in touch to talk to one of our experts who can help you get a stress-free remortgage.
Think carefully before securing other debts against your home. Your home may be repossessed if you do not keep up repayments on your mortgage.
For more information please contact Abode Brokers Ltd on 0203 6339812 or email email@example.com we will be happy to assist you.