Remortgaging simply means switching your existing mortgage to a new deal, often to a new mortgage lender. There are literally millions of borrowers currently paying their lender's standard variable rate (SVR). No lender's SVR will be the best deal they have on offer. Unless you have just come out of a special deal (such as a fixed rate, tracker rate or a discounted rate), there is nothing to stop you switching off the SVR to a lower rate or a more suitable deal. And even if you have just come out of a special deal and are obliged to pay a penalty to switch to a new one, the figures may well add up in your favour.
Can you switch?
You could save a lot of money by changing your mortgage and lender - follow these steps to see if you might be able to switch and save.
Step 1
Dig out the details of your current mortgage. What type of deal do you have? If it is:
a) Variable - you can remortgage to a better deal straight away (unless in extended tie-in)
b) Flexible - truly flexible mortgages allow you to leave when you want to with no penalty
c) Variable with a cashback - you may have to repay the value of the cashback before you are allowed to switch mortgages
d) Variable with a discount, fixed rate or capped rate - you may have to pay a redemption penalty to switch deals
e) Base Rate Tracker - you should be able to remortgage to a different deal straightaway
Get in touch with your lender and ask them to work out how much you will have to pay in redemption penalties (if applicable). Make a note of what it will cost to move your mortgage.
Always double check with your current lender what penalties could be incurred (eg. Extended tie-ins).
Step 2
Make a note of:
Your current monthly repayments
Step 3
Call Mortgage Saints to prepare a quotation for you.
Ideally, remortgaging should save you money straightaway, but if there are costs involved it may take a couple of months to recover those expenses.
Are you getting the best deal on your mortgage? How long has it been since you reviewed your options? By switching your mortgage you could be saving money each month, lowering your monthly payments and even releasing some of the equity that's in your home. This could be spent on home improvements, a holiday or a new car.
At Mortgage Saints we have over 4000 different mortgage options, many of which are unavailable on the high street. We give you straightforward advice and find solutions that will be tailored to your requirements.
To apply for a remortgage simply complete the brief enquiry form and our adviser will contact you as soon as possible to discuss your individual needs. Alternatively you can contact us on 01189 677 429 to speak to an adviser.
A broker fee of up to 2% of the loan may be charged on completion. The precise amount will depend on your circumstances.
Mortgage Saints Ltd is an appointed representative of Home of Choice Ltd which is authorised and regulated by the Financial Services Authority.
Your home may be repossessed if you do not keep up repayments on your mortgage
