Top tips for finding the right home remortgage
If you are looking for a better mortgage deal but you are not moving house, a home remortgage could be the right option for you.
The majority of UK consumers who look at remortgage options available on the market today find that they can save, sometimes significantly, by switching lender. And there are plenty of re mortgage options out there to choose from.
You could save thousands of pounds over the term of your home loan by finding the right home remortgage for you. In fact, some people knock as much as 2% off the interest rate on their mortgage with a re mortgage. This represents a saving of 100 a month for the average homeowner. Thats 1,200 a year, or 24,000 over 20 years.
This is just one of the advantages of a remortgage. Since the value of your home has most likely risen significantly in recent years, a remortgage could also be used to release equity in your home which you could use to renovate your existing home, invest in another property or treat yourself to a new car or a holiday. Many people use remortgages to consolidate debts into one low interest loan with one monthly repayment.
Basically, a remortgage is when you pay off one mortgage with the money from a new mortgage using the same property as security.
There are hundreds of remortgage options out there from scores of different lenders. These include variable interest rate remortgages, fixed remortgages, capped remortgages and tracker remortgages.
The type of remortgage that suits you will depend very much on you own personal circumstances. A fixed rate home remortgage will offer you the security of a set monthly repayment over an agreed length of time. Meanwhile, variable interest rate and tracker remortgage repayments will fluctuate as the Bank of England adjusts its rates. Capped rate remortgages offer the best of both worlds, but can be expensive.
To simplify the process of finding a good remortgage, you should decide on which type suits you before you begin your search. Once you decide you can compare products by visiting the websites of banks and building societies that offer remortgages.
You should compare interest rates of all products, but you also look out for remortgage fees and charges. These can be levied both by your existing lender and the company you are remortgaging with.
If you remortgage from an existing fixed rate mortgage you will be liable to pay a redemption fee. You will also most likely face an exit fee, which many lenders have hiked to about the 300 mark in recent months. Also be aware that your new lender may charge a set up fee for your remortgage, and you should negotiate for as much flexibility as possible in case you switch lenders again in the future.
There is plenty on offer, so you should have no problem finding a home remortgage for your house. A house remortgage is not that difficult to set up and could save you a lot of money.
