If your mortgage is the single biggest expenditure, see the guide to Remortgaging in 2015
If your mortgage is your single biggest expenditure, cutting its cost is likely to be your biggest single money saver.
The UK mortgage market is one of the most competitive in the world, yet the number of deals out there makes it hard to know what’s best for you. There may be a deal out there for you, but it’s got tougher. Therefore the aim is to find the best deal for you and to figure out whether you’re eligible for it.
This guide is for anyone who already has a mortgage on their home. A re-mortgage can be for many reasons – maybe you’re coming to the end of your current deal, or your deals no longer right for you. Or maybe you want to try and cut costs, or consolidate debts?
Remortgaging means shifting your mortgage from one lender to another to get yourself a better deal, you don’t even have to move house to do it. There are many reasons why re-mortgaging could make sense for you but the main one is simple, saving money.
A mortgage is the biggest financial commitment for most people, for some; sticking on the standard variable rate (the rate you ended up paying after your introductory offer has ended) is the best option. However, it is always worth challenging your current lender to give you a new offer as it could reduce the fees you pay to get a new deal.
If you feel that it is time to move onto the next provider, remember that although this will save you money in the long run, re-mortgaging comes at a price. Mortgage interest rates have dropped, the fees lenders levy have increased significantly and you may need to pay an exit fee to leave your current lender and, depending on your deal and early repayment charge as well.
This doesn’t mean that you shouldn’t re-mortgage, it simply means you need to do some sums, and this guide will explain how to before you take the plunge.
This guide consists of 10 chapters:
Chapter 1: Why should I re-mortgage?
The biggest reason is to save some serious money, but it’s not the only one. Find out why you should look to re-mortgage in this chapter.
Chapter 2: Who shouldn’t re-mortgage?
Remortgaging isn’t the right option for everyone, there’s many reasons why you shouldn’t, or won’t be able to, re-mortgage. Check this isn’t you before taking the plunge.
Chapter 3: Getting ready to re-mortgage
Before you start looking at re-mortgage deals, there are some vital bits of information you need to know before ditching your current mortgage. This chapter gives you the questions you need to ask your current lender and confirm what you need from your new lender.
Chapter 4: Boost your chances of getting the best mortgage
Getting any type of mortgage is tough these days and you can’t rest on your laurels just because you’ve managed to get a mortgage from a lender before.
Read our top tips on getting yourself in the best possible shape to bag the most attractive re-mortgage deals on the market today.
Chapter 5: Remortgaging if you’re self-employed or a contractor
Find out what additional information you’ll need to prove you can afford a re-mortgage when you’re not a standard PAYE employee.
Chapter 6: What type of re-mortgage should you choose?
Do you know your fixed rate from your variable? Or whether you should choose repayment or interest-only? This chapter explains the pros and cons of the different mortgage types available.
Chapter 7: Moving house
If you’re moving house, it’s not a re-mortgage you need. But it doesn’t automatically mean you need a new mortgage either. If your current mortgage is portable, you might be able to take it with you. This chapter explains what porting is and the checks your lender will carry out before saying yes or no to you being able to move your mortgage with you.
Chapter 8: Don’t forget the fees
Doing your sums is really important when re-mortgaging as there’s likely to be fees for the new mortgage and maybe even some for leaving your current mortgage. This chapter points out all the fees that could be involved so you can make sure the sums stack up.
Chapter 9: How to get the best re-mortgage deal
This covers going solo (if you’re ultra-confident), the three KEY questions to ask a broker and how to find a top broker. Chances are that using the right type of broker will be the best bet for most people, as they can whittle down the top deals quickly and offer you an extra layer of protection if things go wrong.
Chapter 10: Watch out for the hard sell on…
To compensate for lower profits on headline mortgage rates, some lenders have upped prices on associated insurance products. This chapter tells you the insurance policies you might face the hard sell on, what you should expect to pay, and how to find the cheapest products.
Chapter 11: Re-mortgages quick Q&A
This chapter covers a few commonly asked questions, like ‘what is the mortgage APR for?’ or ‘can I let out my home?’.
If you’re ready to hunt for a top re-mortgage deal, head straight for our Mortgage Best Buys tool, where you can compare the top rates, and then click through to a lender or broker to get your deal.
If you want to find out more about the guide, or download it, click here.