Finding the right remortgage company
Finding the best remortgage means finding the best remortgage company, and there are so many to choose from. Banks, building societies and online remortgage providers are all competing for your business, so there are some great deals out there.
A remortgage is a loan you take out with a new lender to pay off your existing mortgage, while keeping your home.
When you begin looking for a cheap remortgage, you should consider what is on offer from each remortgage company. Remortgage suppliers publish full details about their products on their internet sites and there are numerous remortgage comparison websites too.
You'll find that almost all companies offer a range of products such as standard variable rate remortgages and fixed rate remortgages. Other products include flexible remortgages, current account remortgages and offset remortgages.
The exact features on offer will vary from company to company, and product to product. Remortgage providers offering flexible products usually leave you overpay or underpay; repay lump sums; and take repayment holidays.
When you choose the right company and the right remortgage for you, there are a few of steps involved in arranging the remortgage. This is much easier than buying a new home as the property is already in your name.
Firstly you will have to provide details of your income and your personal situation to try to get agreement in principle for the loan from your remortgage company. Once you provide this information the remortgage provider will check your credit rating with credit reference agencies and check your income against the amount you want to borrow.
Once you have agreement in principle from a remortgage company, you will need to fill out an application form and send it to the lender with documents such as proof of income. All going smoothly, you will have a new re mortgage within a couple of weeks.
However, there are other fees and costs associated with remortgaging. If you currently have a fixed rate mortgage with your existing lender, you will probably be liable to pay a redemption penalty. This can push up the cost of remortgaging significantly. Your existing lender will also charge an exit fee if you switch.
Also factor in legal fees and the cost of having your home revalued, and your new lender will most likely charge you a loan arrangement fee. These could add up to around 2,000. However, try to negotiate to see if you can get some of them waived.
There are many reasons why people decide to remortgage. Some do it to save on their monthly repayments, while others want to raise extra cash for home improvements or to treat themselves. The best remortgage company for you will depend on your reasons for remortgaging. Be sure to shop around and look at all the options, or get a remortgage broker to help you.
It is also a good idea to look for a remortgage company that is flexible. You can potentially save thousands by making early repayments, but some companies will penalise you for this. When looking for a remortgage, compare all aspects of the loan to find the best one for you.
