Tips and advice on finding the best remortgage
There are many things to take into account when looking for the best remortgage for you. Variable interest rates, fixed interest rates, fees, charges and customer service are just some of the things that you will need to consider when shopping for a remortgage in the UK.
Today, there are literally hundreds, if not thousands, of remortgage products on the market and there are many cheap remortgages out there. It can be difficult to sort through all the products to find the best remortgage rates, but the help of and independent financial adviser, a remortgage broker or the internet can help.
So what is a remortgage? A re mortgage is when you pay off one mortgage with the money from a new mortgage using the same property as security. It takes some time and work to find the best remortgage for you and to make all the arrangements. However, finding a cheap remortgage deal can save you hundreds, if not thousands, of pounds each year.
For example, if you have a mortgage of £100,000 with a variable interest rate of 7.5%, your monthly repayment will be £739. If you remortgage to a rate of 6.5% your monthly repayment would be £675, while a variable interest rate of 5.5% would cost just £614. In one year, remortgaging to the 5.5% rate will save you about £1,500, so the savings over a 25 year term would be £37,500, which is a huge saving.
As you can see, there is a lot of money to be saved if you can find the best remortgage deal for you. When you set about looking for cheap remortgages, you can compare interest rates yourself or you can ask your broker about the best remortgage deals.
The first thing you should look at when comparing remortgage profits is how much your repayment will be each month. Watch out for introductory remortgage interest rates, as these do not reflect the cost of your repayments in the long term. It is also a good idea how much your total interest repayments over the term of the loan will be if you remortgage.
While remortgage interest rates are the first thing to look for when you compare remortgages, also try to keep an eye out for the less obvious costs. When you get a new UK remortgage, you can expect to spend a few hundred pounds to cover the costs of a property valuation, conveyancing fees and other costs.
You may also face significant fees from both your existing lender and your new remortgage lender. This summer, in response to the increasing numbers of people choosing to remortgage, many UK lenders increased their exit fees. However, if you took out your mortgage before the price hikes came into effect, you should not be liable to pay the increased rate.
Also watch out for redemption fees if you are locked into a fixed term with your existing mortgage lender, and set up fees that might be charged by your new remortgage lender.
All of these fees should be considered when you look for the best remortgage deal. We hope this advice will help you find the best remortgage for you.
