Remortgage advice UK
One way enterprising borrowers have of making sure they have the best mortgage rate is to seek out the best of advice on offer every 4 or 5 years.
If you stay with your original mortgage for the term of the loan, you can lose out on benefits being offered not available when you started.
In remortgaging you would be changing lenders.
Here are some of the benefits you could achieve from this advice:
You current lender may have you on a Standard Variable Rate.
If so, it is possible he could offer something better today and if he doesn’t there will certainly be others who will.
Bear in mind this may trigger exit charges. But you have to take an overview and see if, in the long term, these would be easily overtaken by the gains you make in remortgaging elsewhere.
If you need to obtain a loan.
With the increase in property values over the last 10 years or so, there is likely to be a high degree of equity in your house. If you remortgage you can more easily obtain your money without having to resort to a separate loan at a higher rate of interest than current mortgage rates.
If you have a large amount of debt, which is costing you a higher interest rate than current mortgages rates.
How should you choose the best remortgage deal and what advice should you take?
Basically, any special offers you received when you started your mortgage come to an end and are then subject to standard rates of the lender, which as you might imagine, are the most costly.
So you may consider the following types of loan:
Fixed rate loan.
Here you will pay a fixed rate for an agreed number for years.
You gain if the rate increases and you lose if rates drop.
Capped rate is similar to fixed, but offers the chance to gain from a lower rate if rates should fall.
You should note that this type of product is generally more expensive than other standard products and may only last for a few years.
Tracker rate mortgage advice
These track bank base rates, and you gain immediately if rates fall.
Of course you pay more when they rise
A remortgage can be either be issued by your current lender or from a new lender and in either case, you don’t need to leave your home
You can use the facility to take advantage of current offers and often gain in the long run
You can raise loans at much more favourable rates of interest
You can solve debt problems if you are paying rates higher than current mortgage rates. Very likely in the case of credit care debt
Be careful when you consider the move because the deals offered can be very detailed and you need to work your way through all the penalties and complexities to make sure you are really better off at the end of the day
This information is given as a guide only and does not constitute legal advice or financial advice.
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