When you decide to remortgage, it can often be daunting knowing which lender to go to. Especially if it’s been a few years since you looked at the market place and you have no idea who is who anymore. So where do you start and how do you know who to use?
Use a Mortgage Broker:
The first and probably most valuable tip is to use a mortgage broker. They have tons of knowledge of the industry, the lenders and the products available on the market so they are the best bet. They also have access to broker only deals, whereby you may be able to obtain a lower interest rate, or lower product fees.
The only downside to using a mortgage broker is that you do have to pay a fee for the service, however this is often less than what you will save by getting a cheaper mortgage deal, and the broker can usually be paid by commission from the lender so you don’t have to pay them directly.
Another great thing about using a broker, is that if you use an independent financial adviser, you can also get all of your insurance covers sorted out at the same time. If you already have cover such as buildings and contents, an adviser may be able to rebroke it to get cheaper cover for you.
Do Your Own Research:
Get talking to friends and family who have recently remortgaged. It’s also a good tip to calculate your mortgage refinance options.This is particularly useful for recommendations of lender who offer a good service. But your research should not stop there; you need to look at facts and figures too to ensure you get a good lender.
Try heading online and use a comparison site to check out lender remortgage rates. You can also log on to a forum and see what other people’s views of certain lenders are. There is no point in saving a small amount of money if your account is going to be handled badly.
Get Remortgage Quotations:
Make sure that you obtain some quotations from your top choice of lenders. These will show how much you will repay over the term, taking into account all fees. Also, make sure that you get a quote from your existing lender, as they may be able to offer a preferential rate in order to keep your business.
Think About What Mortgage You Would Like:
Depending on the type of mortgage that you would prefer, you may be more limited in your choice of lenders. For instance, if you want a 10 year fixed rate, some lenders may not offer this and so they would automatically be discounted from your list of options.
The product that you want can often drive who you will end up borrowing from, and as said before always remember to check the deals available with your existing lender.
There are many things to consider, so make sure that you don’t rush your decision. Do your research, get help if needed and give yourself plenty of time to make the right choices.
(James McHeggins writes for JustRemortgages.com one of the UK’s top sites for the latest remortgage rates and best remortgage deals.)
Follow Us!