Remortgaging doesn't have to be difficult. It can be quick, straightforward and could potentially save you a lot of money. For the majority of us, the mortgage is the largest financial commitment, and also the one that is reviewed the least often for cost effectiveness.
Many borrowers have been content to let their initial rates expire and ride out the variable rate of their lender, only really reviewing the mortgage when rates start to increase. Many are not aware that rates have already started going up, and complacency can cost a lot of money in interest charges.
Whilst mortgage rates have generally increased in response to the recent base rate rise, you could still be likely to find a better deal than you have today, especially if you’re sat on a standard variable rate (SVR) which is vulnerable to rate increases at any time. The base rate rise has already triggered lenders to launch new deals, both to retain existing customers and attract new borrowers. Here are some top tips to consider when you are looking to remortgage:
1. If switching to a new lender, they will want to assess your affordability, income and bank statements as they don’t know you like your current lender does. If you have complex or irregular income, it may be worth using a specialist broker to ensure the lender takes a holistic view of your income and borrowing potential
2. Don’t overlook exit fees and early repayment charges, but depending on when you last fixed your deal, it may still be worth switching and paying the penalty to your current lender, as you could still make savings. This is especially true if you have already moved onto your standard variable rate, as it is highly likely you could obtain a lower rate with your current lender or a new lender
3. Opting for a fixed or variable rate is down to personal needs, preferences and circumstances. A fixed rate guarantees security against rising interest rates but will carry early repayment charges for exiting the deal early. Most variable rate mortgages, with the exception of discounted variable, do not have early repayment charges at any time and therefore offer flexibility to repay your mortgage or change lender with no penalty. It is important to take advice and shop around yourself or use a specialist broker
CMME is a trading name of CMME Mortgages and Protection Limited. Authorised and regulated by the Financial Conduct Authority (FCA reg. 414798). Registered in England No. 04886692. Registered Office: Albany House, 5 Omega Park, Alton, Hampshire, GU34 2QE. Please be aware that Commercial Mortgages, Overseas Mortgages and some Buy To Let Mortgages are not regulated by the Financial Conduct Authority. Calls may be recorded for training and security purposes and to improve the quality of our services.