The Remortgaging Process
At first remortgaging can seem like a very complicated process but it needn’t be, this brief guide aims to make the process of remortgaging seem less daunting. Remortgaging can be as simple as the policy holder moving to a different deal with the same lender or it may involve moving to a new provider in order to get a better deal. You will need to get a fresh survey of your property as well as an up to date valuation.
The first step to take would be to contact your current lender and inform them that you are considering a remortgage and ask them if they have the ability to offer a similar or more competitive deal to you. It is important to consider that there may be some penalty charges; a good starting point is to consider exactly how much your mortgage currently costs per year as well as factoring in any mortgage penalties as necessary.
The next stage on would be to find a mortgage that suits your needs. There are many different types of mortgage on the market and often there are a number of options to choose from. Mortgage calculators are also popular now and there are many free to use options available online.
Don’t forget to work in any mortgage fees you may be subject to. Always aim to check with your potential new lender as to whether they have any registration, valuation or legal fees that you will have to pay. Sometimes lenders will agree to waive the fees in order to encourage you to sign up with them. Be sure to add any additional fees onto the cost of the mortgage when calculating.
Be sure to compare the cost of your current arrangement including fees you pay in comparison to the potential new mortgage and the fees that will come with it. If fees are involved then it may take a period of time to see any benefit from switching. The length of time that it may take to see the benefit will vary so it is worth looking into this carefully before agreeing to anything. If you need to see a difference immediately make sure your new agreement will allow for this.
Along with redemption fees lots of lenders also charge a release or selling fee which can cost around one hundred pounds. Legal costs are also important to consider. They should eb a lot lower as there will be no stamp duty or new contracts to create. Expect to pay somewhere in the region of three to five hundred pounds.
Remortgaging should mean that you save money, although the saving may not be visible straight away but they shouldn’t take too long to appear. As it is a big decision always make sure you have all of the advice you need before committing to a new agreement
Help with debt consolidation is readily available now. An IVA explained carefully can seem like a good option to some people, seeking professional advice about debt and remortgaging is always advisable.