Remortgaging Your Property

What To Consider When Remortgaging Your Bristol Property

iStock_000006512712XSmallI t’s an unfortunate economic reality that companies rarely give deals to existing customers that are as good as those offered to new customers.

This practice is particularly prevalent in the world of consumer finance, and perhaps has the biggest impact in residential mortgage lending.

Usually when you take out a mortgage deal, it runs for a fixed term; commonly three or five years, but sometimes longer. At the end of that term, the initial fixed or discounted interest rate expires and, unless you do something about it, your mortgage will revert to the lender’s standard variable rate (SVR). Your monthly mortgage payment will go up, sometimes by a considerable amount, and that’s the last thing any of us need.

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Steve Mears Independent Mortgage Services LogoMost lenders will write to you shortly before your current mortgage rate is due to expire, usually with an offer to transfer to a new mortgage deal from their range of products for existing borrowers. These deals will generally be preferable to their standard variable rate … but it’s worth considering whether you can obtain a better deal by transferring your mortgage to another lender entirely.

Things to consider when remortgaging

Before looking at remortgaging, it’s important to check whether you have any fees for leaving your current lender. Early repayment fees for most mortgage deals end when the special rate finishes, but some mortgages may have a further tie-in period. Check with your current lender what fees would apply, and be aware that at the very least you will have a ‘mortgage repayment administration fee’, which lenders charge as standard when a mortgage is repaid.

The key to making an informed remortgage decision is comparing the costs with the benefits. Your new mortgage lender will usually charge an arrangement or product fee, and valuation or legal fees may also apply (although in some cases these may be paid by the new lender as part of the remortgage deal) — when added to the fees from your current lender you might begin to wonder whether it’s worthwhile remortgaging at all.

Ultimately, however, these one-off costs need to be balanced against the savings you will make on the new mortgage deal. For example, a reduction of £90 per month on your mortgage payment will add up to a healthy saving of £3,240 over three years.

Don’t be put off by the perceived ‘hassle’ of changing your mortgage to another lender. Remortgage applications tend to be a lot quicker and more straightforward than mortgage applications for a house purchase. By using an experienced professional mortgage broker like Steve Mears, you can be sure that you’ll find the right deal to meet your circumstances, and will also be provided with help and advice throughout the process.

So call now on 0117 325 1130 (lines open 8am-6pm Mon-Fri) or complete the Request A Call Back form on the right to discuss your remortgage needs in more detail.  Based on your particular circumstances, Steve and his team can usually give you an idea of eligibility and the latest remortgage rates within minutes.  And there’s absolutely no-obligation.

Your home may be repossessed if you do not keep up repayments on your mortgage.

Our fee for mortgage advice is between 0% and 2% of the loan amount payable on completion.  Typically this will be £495.