Remortgaging can help you lower your monthly repayments, pay off your loan sooner or borrow more money.
If you’ve never been through it before, here’s how remortgaging works and why it might be a good option for you.
The benefits of remortgaging
Chances are, your mortgage had a decent temporary rate when you signed up for it. Fixed rate mortgages charge a set amount of interest for a set number of years – usually 2, 3,5 or 10 years.
When this period ends, your rate usually reverts to the lender’s Standard Variable Rate, which tends to be more expensive than your initial rate.
You can avoid this by remortgaging with a more competitive deal.
Remortgaging is also an opportunity to borrow more money – perhaps for home improvement projects like a new kitchen or an extension.
Or, if you’d like to pay off your mortgage quicker than you planned previously, remortgaging is an opportunity to change the term of your mortgage.
Should I stay, or should I go?
Many people remortgage with their existing lender, which means no legal fees, no credit checks and no exit fees. The trade off is that there may be cheaper deals elsewhere.
Remortgaging with a different lender could land you a better or more flexible deal. Whether you want to overpay on your mortgage or take repayment breaks, you might find other lenders are happy to give you something yours can’t.
If there’s a saving to be had by moving to a different lender however, be sure to check it’s not swallowed up by fees.
Okay, so how do I do it?
Get a valuation on your home to find out its current value and find out how much is left on your current mortgage balance. You can get a valuation for free with companies like Yopa.
Consider your options. You might want to go for another fixe rate mortgage or you might fancy a tracker this time. You might want to borrow additional cash, extend the term of your mortgage etc.
Get some advice. A mortgage broker can recommend a mortgage for you and your circumstances. Some brokers charge a fee, but Mojo Mortgages is fee-free.
Do your homework. Check if there are any exit fees to pay on your existing mortgage. Any fees you owe need to be less than the savings you’ll make by remortgaging to make it worthwhile.
Apply. When you’ve found a deal you’re happy with, it’s time to apply. At Mojo Mortgages we’ll handle the entire process for you, talking to the lender and solicitors on your behalf and managing everything through to completion.
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