Understanding why it’s important to remortgage when the time is right is critical! When you get a mortgage its for a set term (i.e. 30 years) and you probably would have secured a special deal for a period of this time. An example of this could be a 30 year mortgage with an initial fixed rate for the first 2 years. So what happens at the end of the fixed rate period? Should I seek remortgage advice? Why should I review my options and look to remortgage? And if I don’t remortgage do I still have a mortgage at the end of two years?
Okay so your mortgage deal is coming to an end or has already ended. Why do I need to remortgage?
Remortgage and avoid the SVR:
If you do nothing, you will revert onto the lenders standard variable rate (SVR) – which is usually significantly higher. If this is the case, this means your monthly payments will jump up!
Remortgage because your fixed rate is ending:
Originally you might have secured a particular type of deal i.e. a fixed rate because you like the security of knowing exactly what your payments will be. However going onto the lenders SVR is exactly the opposite of having security, as the payments can change at any time.
Remortgaging is an opportunity to review:
It could be a great opportunity to review your situation. Click To Tweet Reviewing your options could result in some great outcomes, one of which could be reducing your term and paying off the mortgage quicker and therefore saving thousands on interest payments.
Remortgage can be a time to change and an opportunity!
Remortgaging isn’t just about getting a new fixed rate, a better deal or something else!
You might want to borrow more money! Maybe it might help to consolidate debt or you have some home improvements to make!
A lot can happen in your life since the time you originally took out the mortgage, so use this time to review and think about your mortgage options. An independent mortgage adviser will really be able to help but also advise you of any potential risks.
Can a remortgage make a positive impact?
You might be in the fortunate enough position to be able to overpay and reduce your mortgage balance. This could have a significant impact.
Remember you don’t have to have the same terms as you originally had with your first lender. If something needs to change, this is the time to do it.
Doing nothing with your mortgage will usually cost you!
We know its not the most exciting subject or something that is on your priority list, but trust me, its important and could make a significant difference to your financial well being.
Take the time to review your options, or get a professional mortgage adviser to do it for you. They will tell you what the best options for you are.
How to Remortgage:
Understanding the importance of remortgaging is one thing, knowing how to go about it is another! Here are your options:
Review your mortgage with an independent mortgage broker:
They will offer independent advice, recommend the best remortgage deals for you and assess all your options, including the options with your existing lender. By looking at the whole market and your existing lender, an independent mortgage broker can help save you time, money and manage your mortgage, not just now, but into the future. If you can find a team (like us) who you can trust and work well with, then it can remove a lot of the worry and burden for you.
Product switch with your existing lender:
if your lender offers you a deal you could just switch onto another option, thereby avoiding the SVR, however not all lenders offer this. For those that do, it could be a good option, however there could be much better options in the market place. Other lenders want your business and they usually offer attractive deals to make it worth your while.
Remortgage to a new lender.
Looking at the whole market is critical to secure the best mortgage deal and there are some great remortgage deals available. The end result could end up saving you thousands, upon thousands of pounds!
Just because you already have a mortgage, should not mean you get complacent and accept the first thing that is offered to you. The difference between getting any deal or the best deal, could be the price of several holidays, or maybe even more!