Taking out a mortgage is perhaps the single biggest financial undertaking most people will ever tackle in their lifetime. Following weeks (if not months) of paperwork and negotiations, you eventually settle into a deal you are reasonably happy with.
But what if your lender decides to significantly increase your monthly repayments after your introductory fixed-rate deal? What if you suddenly find yourself looking at a decidedly uncompetitive deal, which you would prefer not to be locked into in the next 25 years?
This is a scenario that will be familiar to millions of mortgage payers but is an eventuality that can be avoided by remortgaging.
Best of all, remortgaging to get a better deal and save significant sums of money can be easier than you might think.
Deciding Whether to Remortgage
Choosing whether or not to remortgage can be a daunting prospect but can be simplified with the help and support of an experienced broker.
It is important to remember that even if you find a far more competitive deal with lower interest rates and borrowing costs, there are other factors to take into account.
For example, most mortgage providers impose exit fees and penalties for early repayment. Depending on the affordability of the new mortgage deal, these fees could augment the savings you stand to make.
Likewise, the introductory deal offered by your new provider could eventually pave the way for an even less competitive long-term deal. If you have poor credit or if your employment status has changed since you took out your mortgage, it could compromise your eligibility for a good remortgage deal.
This is why it is essential to consult with an experienced broker ahead of time who will handle the complex mortgage calculations on your behalf, after which your broker will track down and negotiate an unbeatable deal with a top-rated lender, leaving you with little to do but stack up against potential savings.
Why Apply for a Remortgage?
There are various instances where it makes good sense to consider remortgaging, including but not limited to the following:
- Your introductory fixed-rate deal has come to an end, and your mortgage is being switched to a much less competitive variable-rate product.
- For any given reason, you are not particularly satisfied with your current lender and would like to switch to a more customer-focused provider.
- Changes in your personal or professional circumstances have made the terms and conditions of your current mortgage less than favorable.
Remortgaging can also be great for releasing some of the equity you have tied up in your home. When remortgaging, you can apply for a loan that exceeds the value of the original mortgage you intended to pay off, leaving you with a sum of additional capital to be used for any purpose you like.
Approached in the right way, remortgaging can lead to considerable long-term savings. But as you are once again locking yourself into a binding agreement for many years, it is something that should be approached under the advisement of a suitably qualified professional.
Craig Upton supports UK businesses by increasing sales growth using various marketing solutions online. Creating strategic partnerships and a keen focus on detail, Craig equips websites with the right tools to rank in organic search. Craig is also the CEO of iCONQUER, a UK-based SEO company, and has been working in the digital marketing arena for many years. A trusted SEO consultant and trainer, Craig has worked with British brands such as FT.com, djkit.com, UK Property Finance, Serimax and also supported UK doctors, solicitors, and property developers, to gain more exposure online. Craig has gained a wealth of knowledge using Google and is committed to creating new opportunities and partnerships.