|
|
Remortgaging can be one of the most effective ways to save yourself a bundle of money. So here's our remortgaging guide to help you on your way. If there are any terms in the guide you're unsure of, then take a look at our
jargon buster.
 You may want to consider remortgaging when the introductory offer on your current mortgage is about to run out. In most cases, this means you'll be moved onto your provider's standard variable rate, which is usually a higher rate than the offer will have been. However, before you consider remortgaging, check with your current lender what they can offer you at the end of your introductory period.
 Remortgaging can provide you with a new introductory offer, and could also help you to release any equity acquired - especially if your house has increased in value. Make sure that you check for any arrangement fees or Early Repayment Charges with the new mortgage. Also, find out about any added extras you might be able to take advantage of, such as cashback or insurance discounts.
 Check if your current mortgage has any Early Repayment Charges. Find out how much they are, and how long you're tied in for - you can find this on the Key Facts Illustration your lender gave you before you took the mortgage, or else you can just ask them.
 Work out how much you could potentially save with a new mortgage and then subtract any fees or charges you might incur as a result of switching. It should be pretty obvious whether to make the switch or not. Don't forget to consider any Early Repayment Charges from your current lender, or whether your new lender would require you to pay one if you were to leave them earlier than agreed.
 Has your situation changed since you first bought your house? If so, a different type of mortgage might suit you better. Make sure you know the difference between tracker, fixed and discount mortgages.
 Look into the different ways you can repay your mortgage. You can choose from repayment or interest only mortgages. Also, an offset mortgage could help you to save money.
 When you remortgage (or at any other time for that matter), make sure you're getting the best deal on your home contents insurance, buildings insurance, repayment protection insurance and life assurance.
 You can choose to go straight to a new provider yourself, or go to an independent financial advisor to do some of the work for you. Either way, a little bit of research can go a long way.
 If you find yourself a cheaper deal, why not aim to pay the same amount each month as you do now? Making the same level of repayments with a lower interest rate will mean you could pay off your mortgage earlier. Many flexible mortgages will allow you to do this, but check first that you won't be charged for making overpayments.
 And finally - research, research, research. It really is the key to getting what you need from your new mortgage.
|
|
|
Egg Home > Bank > Mortgages > Guides > Remortgaging guide > 
