One of the major choices you will face when remortgaging is deciding which lender to approach. If it has been a few years since you last shopped around for a mortgage it can be tough to find a lender as there are many new names in the market. Our guide explains how you go about choosing your remortgage lender.
Use a Mortgage Broker: Mortgage brokers are professionally qualified individuals who have an unparalleled knowledge of the mortgage market. They can help you find the best deal and lender for you as well as accessing exclusive remortgage products that may not be available to the general public.
Some mortgage brokers do charge a fee for their services and so you should always be aware of any charges before you appoint a broker. Often, the fee will be small compared to the savings that the broker can help you make on your mortgage whilst some brokers are paid directly from the lender involved.
Another advantage to using a broker is that when you use a financial adviser, you can also arrange to pay for all your additional financial products as well. You will need insurance cover and other issues to be dealt with at the same time
Do Your Own Research: Don’t rely too heavily on the advice of professionals, make sure you have your own opinions on what to do. Discuss with family and friends who have recently had a remortgage. This is particularly important when it comes to recommendations of lenders who claim to offer a good service. Make sure your research isn’t just anecdotal; you need to examine facts and figures too to make sure you get a good lender.
One way to research lenders is to head online and use a comparison site to look at the various remortgage deals on offer. Online finance forums also share people’s experiences with certain lenders including rates and the service they received as part of the remortgage process.
Get Remortgage Quotations: Obtaining illustrations from remortgage lenders will help you compare the monthly repayments as well as any fees or charges that are involved. And, it is also worth speaking to your current mortgage lender as they may have a range of ‘retention’ deals designed for existing borrowers.
Think About The Type of Mortgage: Some lenders may not offer the type of mortgage product that you want, so you need to get a little knowledge about what lenders specialise is which product types, so that you don’t waste your time approaching lenders who don’t have what you’re looking for.
The particular type of remortgage product that you want can frequently inform which lenders will end up on your shortlist. And, don’t forget to speak to your current mortgage lender as they may have just the type of deal you’re looking for.
There are multiple considerations with remortgaging to be mindful of, so make ensure that you don’t act too quickly or find yourself being rushed into making a decision. Do lots of research, talk to a broker or someone qualified to comment on remortgaging if you need to and only make a decision when you are completely confident it is the best deal for you.
Timothy Frodsham writes for JustRemortgages.com one of the UK’s
top sites for the latest remortgage rates and best remortgage deals.