Remortgaging Advice – What To Look For
If your current fixed-rate mortgage deal ends within the next 6 months, then now is the time to start looking for a new deal. Even more so if you think interest rates might go up between now and the end of your product. Here, we provide some simple remortgaging advice.
At one time, remortgage offers only lasted for 3 months. Nowadays it is much more usual for lenders to hold offers open for 6 months so you can lock your deal well in advance. Therefore, this keeps the period in which you automatically switch to the standard variable rate to a minimum. If you are really organised, it is possible you might spend less than 24 hours on the standard variable rate when the time comes!
There’s a chance your current lender will offer you a deal to remain with them. Annoyingly though, these “retention” or “product transfer” mortgages are often less attractive than the deals offered to brand new customers.
Lenders know there is a lot of hassle involved with moving away to a different provider, so they try and capitalise on this by offering an average product but with very slick service. Don’t be caught out! If the savings are minimal or non-existing, then a good Broker will recommend you stay where you are. But if you don’t shop around you will never know.
Also, lots of customers never sign into a new deal. The lenders LOVE people like this! You are most probably paying back more each month than you need to be.
In the future, I think technology will make the process of switching Lenders much quicker. In the meantime, for a little bit of time on the phone with a Mortgage Advisor and sending over a few documents, you really can save yourself a lot of money.
If you’re seeking further remortgaging advice, make sure to get in touch.