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.