A remortgage can save you a lot of money especially if you have already come out of your “honeymoon” mortgage period. For example, people on a fixed rate mortgage will only be able to take advantage of their bargain rates for so long.
This is just one of the ways a remortgage can be so beneficial, however getting the right remortgage for your needs isn’t quite as simple as it may sound. Don’t worry it’s not overly complicated either but there is a lot to take in.
Which is why we’ve outlined some great tips below that will help you find the best remortgage deal for your needs. So, without further ado let’s take a look at my top tips for anyone looking for a remortgage.
Shop Around For Deals
A remortgage is basically a mortgage, isn’t it? Which is why you should ensure you shop around for the best deal. Especially since your options could be limited or very open depending on your credit rating.
Competition between lenders is also very strong so if you have a lot of options open to you finding the best deal could take a while. There are also many different kinds of mortgages available, you could opt for the same type of mortgage you already have or go for something different.
A remortgage does give you the opportunity to try out a different style of mortgage after all so if you think opting for something different would be more beneficial why not go for it? Plus, you could always see what your current lender could offer you in a remortgage deal as well.
So, as you can see there are a lot of different options available to you when it comes to getting a remortgage you may even be able to qualify for a bad credit remortgage in some instances. So, make sure you shop around for the best deal and examine everything closely. Just because something looks like it could save you money when you consider the other costs involved there could be a better deal elsewhere.
Start Planning Early
While you can remortgage your home at pretty much any time (within reasons of course) it will always be beneficial to plan early. This is especially true if you want to avoid moving to the standard rate most lenders will move you to after your fixed or discounted rated period as ended.
So, to avoid paying more than you have to you should start making arrangements for your remortgage as early as you can. This will also give you plenty of time to start shopping around for the best deal, starting early will also give you plenty of time to make the move to your new arrangement before your deal ends.
Professional advice varies but most mortgage brokers and experts agree that you should start looking for your remortgage within three to six months of your current deal ending. A remortgage is not particularly speedy the lender you choose will have to carry out a number of checks before they take you on, so start as early as you can
Get Professional Advice
While I wouldn’t say a remortgage is complicated after all you will have already gone through the mortgage process at least once before. That doesn’t mean it is simple either there are a lot of other things you need to consider and think about when it comes to remortgaging your home to ensure you get the best deal possible.
Which is why I would also advise people to talk with a mortgage broker if they ever need professional advice. Navigating all the options you have and then choosing the right remortgage deal can be tricky so if you’re feeling a little-lost get assistance from a professional.
If you want to stick with your current lender but on a new mortgage plan, then contact them because in some cases you might not even have to remortgage your home. Depending on your credit and individual circumstances you might be able to change your mortgage arrangements without going through the whole remortgage process.
Don’t Forget The Fees
Remortgaging can be incredibly beneficial for some people, the key word there being some! Because even if you could get a better monthly rate under a new remortgage arrangement it doesn’t necessarily mean it’s worth switching or that you will save money in the long-term.
Of course, if you are simply aiming to cut your monthly payments and know you will end up paying more in the long-term then pursuing a remortgage with that in mind is perfectly fine. It all really depends on your individual circumstances, doesn’t it?
But the temptation to switch when you don’t really need to do is a very real possibility, many people do end up remortgaging their home thinking they are getting a better deal only to regret their decision later on.
One important area many people fail to take into account is the fees they will need to pay to end their current mortgage plan. Depending on the type of mortgage you have you could have a very high early repayment charge to pay on top of your standard fees like the arrangement fee and any solicitors charges.
When you’re looking for a remortgage deal you can easily lose focus of the overall cost and instead focus solely on your monthly savings. This means you won’t be thinking about the actual costs you’ll have to pay to get to those savings in the first place. So, make sure you factor in these extra costs into your calculations when deciding whether you want to remortgage your home or not.
Ensuring A Stress-free Remortgaging Process
Getting a mortgage can be stressful and by remortgaging your home you’ll be going through the process again! But when you can make substantial savings or get a mortgage that is better suited to your current needs and position you can see why so many do it can’t you? So, if you follow our advice you can ensure the remortgaging process is easier and best of all completely stress-free.