How to find the best quote for a remortgage
There are many places where you can get a remortgage quote. Remortgage brokers, banks, building societies and online remortgage services will all be more than happy to provide you information on remortgage products.
A remortgage is when you get a new mortgage to pay off your existing home loan, without moving house. Most people get remortgages to save money on their monthly repayments so when you get a quote on a remortgage, this is one of the first things you will look at.
However, there are a number of other factors you should look at when you get a quote. Remortgages can also be used to release equity from your home, consolidate your debts or reduce the term of your home loan.
Before you seek remortgage quotes from other lenders be sure to let your existing lender know that you are shopping around, as they may offer you a better deal. This would save you the hassle and expense associated with remortgaging.
If you decide to switch lender, you will find that there are many types of remortgage products when you look for a quote. Remortgage options include fixed, variable interest rate, capped and tracker.
You will have to decide which type of remortgage is the best for you depending on your personal circumstances. When looking at remortgage quotes, the first thing you should look at the interest rate. In most cases, the product with the lowest interest rate will work out cheapest in the long run. But watch out for special introductory rates. Try to find the remortgage with the lowest interest rates over the full term of the loan.
Remortgaging can attract some other fees and charges. If you have a fixed rate mortgage, you will probably have to pay a redemption fee if you choose to remortgage now. If this is prohibitive, it may be a good idea to wait until the end of the fixed term before you remortgage.
Also, lenders exit fees are becoming increasingly expensive, with many now charging around the 300 mark. Other costs you may need to consider include set up fees from your new lender, legal fees and home revaluation fees. Take all of these into account when comparing products and calculating whether a remortgage will save you money. Also watch out for tie ins such as expensive insurance. You should shop around for this separately to get the best deal.
While the number of people remortgaging is increasing, there are still thousands of people paying over the odds in their old mortgages. The chief reason people do not remortgage is because they do not realise how much it will save them, while others simply do not want to go over the home loan application process all over again.
However, it takes little time and effort to get a few quotes for a remortgage. Have a quick browse online or call into a remortgage broker for a quote. Remortgage brokers will very happy to help you out. You may find that you could save thousands of pounds every year. If this is the case, the question you must ask yourself is: Can I afford not to remortgage?
