Remortgage Guide: How To Save On Repayments

The process of a remortgage refers to switching your current mortgage in order to get a more affordable deal, which can ultimately help you save thousands in yearly repayments. This process can also be considered if you are hoping to cash in a portion of your properties equity that has been built up over time. While there are a few important factors that you should consider before purchasing a home, there are also a few things that you should consider before opting for a remortgage.

Because a mortgage is a long-term commitment, you may later discover that you could be getting a better deal. Switching your current mortgage can be done either by changing lenders or even by sticking with the same lender. 

Determine Your Reasons

There are a few reasons why many people opt for the switching process. However, it is crucial to initially determine your reasoning before making the decision. While some are planning to switch to get access to a better deal near the end of a short-term deal, others may be hoping for a capped or fixed rate that will ensure repayments are predictable. If your property value has risen, you may be hoping to release its equity. You can seek assistance from online remortgage calculators to gain practical insight as to what you could expect from the process.

Compare Remortgage Deals

When searching for the best deals, you can make use of online platforms or consult an independent mortgage advisor. An advisor will be able to determine how much you may be able to save. Before you can settle on a deal, you should consider your affordability in the event interest may increase. It is most common for homeowners to switch to a deal that provides the peace of mind in fixed rates as this ensures predictable repayments as homeowners are often left wondering what to expect when the fixed-rate deal comes to an end.

Consult Your Lender

Even if you have managed to find a better deal, it would be wise to consult your current lender as they may consider matching the terms of the new deal. It is possible that your current lender would like to keep you as a client, which means that you may be able to negotiate terms.

The Application

Once you have managed to decide on the most suitable deal you will need to fill out the application form. The application process may consist of credit checks and you may be required to provide certain documentation as proof of earnings. The application process would be somewhat similar to the application of applying for a mortgage, although, in certain instances, lenders may want to establish the value of your property. Once you have successfully completed the application process, the lender will provide you with the new terms of the loan stipulating the new terms and conditions. 

It may be a wise decision to consider assistance from a legal expert during the application process as this will be able to speed up the process. In most cases, opting for a remortgage will essentially save you thousands per year in repayments.

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