Remortgage – Switching Your Mortgage to Save Money, Raise
Cash, Reduce Your Monthly Payments
Many people change their mortgage provider every year, either to save money, or to raise cash.
What should you think about when changing lenders?
Are you able to reduce your monthly payments?
Some estimate that over half of all borrowers are paying more than they need to for their mortgage each month.
They are possibly paying the lender’s standard variable mortgage rate. There will be lower rates available from other providers.
Because of the fees that lenders charge, make sure that what you gain through a lower interest rate you are not losing through higher charges.
What help is available?
Lenders employ advisers within the branch who usually may only be able to recommend their own products. But there are a host of independent mortgage brokers who are free to advise you from the whole of the mortgage market. Or you could look yourself.
Check the terms and conditions of your existing mortgage as these will tell if you are tied-in to your mortgage deal or if there are any redemption penalties – sometimes phrased as early repayment charges.
If you do have penalties, you must decide if it is worth switching to a different rate or stay put until the penalties have expired. You may feel a sense of loyalty towards the company, however, most lenders do not reward this loyalty with a reduction in rates.
So, you should shop around to see if you can get a better deal.
For free, whole of market remortgage advice, call us now on 020 8802 9030
Monday to Sunday 8am to 8pm