Making Sure You Remortgage Properly
Remortgaging a home is a massive decision and therefore one that really should not be taken lightly. There are many different factors to consider throughout the whole process and therefore it is something that can often take a long while to sort out. As with everything though, this extra time spent thinking will often yield tremendous results, as you could easily save large amounts of money and future headaches if you get it right in the first place.
So the first question to answer when thinking about remortgaging is whether it is worth it. This question can only be answered by personal circumstances and not by a simple article. However, most people find that through using some of the best remortgage deals on the market they can save about 1% on their mortgage – which is a lot when you consider that most mortgages run into the hundreds of thousands! However, for some people the cost of going through the remortgaging process is simply not worth it – they are better off paying slightly more and not having to spend all that money switching their mortgage providers.
It is not just imperative that you make a decision about whether to remortgage – it is also highly important that you do your research and go to all of the different lenders and obtain quotes from each. This will include looking at all of their different offers, which, although you will feel like they are pushing on to you, can sometimes be a great idea. Also, it is worth finding out what the maximum LTV is, although this is usually around the 90% mark. Finally, discuss how much you will be able to borrow. Typically this figure will be around 4-5 times the annual income, but this can vary with some lenders. It really dos pay to ask questions and get your facts straight – after all, I never said that finding the best remortgage deals would be easy!
So, by now you should have identified the best deal for you and the only thing left to discuss is the fees that you will be charged for changing mortgages. The problem here is that over the last few years lenders have been under increasing pressure to keep their headline rates as low as possible, therefore meaning that they have had to raise fees to make up for this. Don’t be put off by a larger than expected fee though – it might be painful in the short term, but in the long term it could make life so much easier! If, however, the fee doesn’t justify the end result, don’t be afraid to keep on looking and start the process again – this is, after all, a highly important process that you are going through and should not be rushed.
So they are the basic facts about looking for the best remortgage deals, but a lot of you will still be worrying about whether you have the financial acumen to go through the process alone. Well worry not, as a huge amount of people employ the services of a broker to find them the best deal – something that can save a lot of money. Granted, the broker has to be paid, but even after their fee you will usually be left with a deal that saves more money. This is because they are trained to find the best deals and to negotiate them down, so they are always worth taking a look at!