Using an online remortgage calculator can be great for getting an idea of how remortgaging works. Likewise, working with an independent broker guarantees access to unbeatable mortgage rates on all types of home loans, but under circumstances would you remortgage your home, how can you identify the right time to remortgage, and what do you stand to gain by looking for an affordable remortgage deal?

Common Reasons for Remortgaging

All applicants have their own unique motivations for remortgaging there home, however, there are certain reasons for applying for a remortgage that are more common than others.

The most prominent examples of which are as follows:

  • You can get a better deal from a competing provider

If a competing provider is willing to offer you a remortgage deal at a lower rate of interest than your current lender, it simply makes sense to switch. Doing so may save substantial sums over the course of your mortgage, even if early repayment fees are payable to exit your existing deal.

  • You have built up equity in your home

The more equity you build up in your home, the more competitive mortgage you can expect. This means that at any point in the process of paying off your existing mortgage, it may be worth considering what is available elsewhere. As you gradually build up equity in your home, you could qualify for a more competitive deal by taking your business to a new lender.

  • Your fixed introductory rate is coming to an end

Most fixed-rate mortgages are only fixed for a finite period, typically between two and 10 years. At this point, the mortgage automatically switches to the lender’s standard variable rate. When this happens, you could compare the market to see if a superior remortgage deal is available. It could be another deal with an initial fixed period at a lower rate of interest, or a standard variable rate deal with a lower APR.

  • Dissatisfaction with your current lender

Of course, it could simply be that you are dissatisfied with your current lender, or some aspect of your existing mortgage. It is important to remember that there is nothing to stop you switching at any time, particularly where doing so could save you money on the life of your loan dependant on mortgage rates.

Establishing the Affordability of Remortgaging

One thing to bear in mind is that when you apply for a remortgage, the process can be quite similar to that of applying for a conventional mortgage. This also means that various fees and charges must be taken into account, which may include the following:

  • Legal fees
  • Valuation fees
  • Arrangement fees
  • Exit fees
  • Admin fees

Remortgaging only makes sense when you stand to save money by switching. It is therefore essential to take all possible costs and commissions into account, before agreeing to a remortgage deal of any kind.

This is where independent mortgage broker support can help, providing a quick and easy solution for evaluating your current financial position and determining whether you could be better off elsewhere. An experienced broker can compare the market on your behalf, find the best possible rates to suit your requirements and handle all aspects of the subsequent application.

For more information on how you could save money with a competitive remortgage or to discuss any of the above in more detail, contact a member of the team at UK Property Finance today.

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