Remortgages

There has never been a better time to remortgage. Interest rates are at an all-time low and have been at these historic low levels for some time. If considering switching your mortgage, it is worth treading with caution and seeking some advice to see if remortgaging is actually the best option for you.

Remortgaging is not always the best option, especially if you are considering switching from your existing lender, as you may have to pay an early repayment charge. There are other fees that may come into consideration depending on your lenders including arrangement fees, booking fees, legal fees, and valuation fees.

This all means that even though you may be switching to a much lower APR, it may not be cheaper for you, especially if your overall repayment date shifts. If you switch your mortgage deal with your current lender you may be able to avoid some of the additional costs.

You can remortgage with your existing lender or look to find an alternative remortgage deal elsewhere. The types of deal are pretty straightforward and much like a standard mortgage. A mortgage advisor will be able to advise you which option would work best for you:

Fixed-rate remortgage – whereby a lender will give you a fixed rate for a set number of years. This is preferable for people who like to be certain of the repayments amounts each month.

Tracker remortgage – this tracks the base interest rate set by the Bank of England so payments can go up or down depending on any movements in interest rates. If interest rates go down then you will be quids in.

In comparison to taking out a mortgage when you are buying a property, remortgaging is usually a more straightforward and quick affair. Because you are remortgaging on an existing property you do not have the issues that come with house move or sale.

Some lenders may require a valuation, although for properties at the lower end of the scale these are often automated or not required at all, especially if the remortgage is considered safe because of the property owner’s previous credit record.

Remortgaging can usually be carried out in four to six weeks, or even quicker if you are remortgaging with your existing lender. It can also be speedier if you live in a standard property and you have an expert remortgage expert helping move things along for you.