Staying with your current lender can be an expensive choice. Make sure you know what alternatives there are.
There are several reasons you may wish to remortgage: your existing mortgage deal has come to an end, meaning you revert to your lender’s Standard Variable Rate (SVR); you wish to release equity or consolidate debt; or you may just wish to get a better deal.
However, you should bear in mind that remortgaging is not a cost-free process. Your current mortgage may carry penalties or charges if you try to leave it early, plus there will be costs associated with the new deal. You need to be aware of all the costs and make sure that you are in a position to cover them.
One of the biggest changes in the mortgage market recently is the lack of products available for borrowers who have less than 20% equity in their property. So, for example, if your original mortgage was for 90% of the property's value and this is still the case at the time you come to remortgage, you may find that there are no remortgage deals available.
In addition to available equity, it is important to keep in mind a number of other points when considering remortgaging such as how much your new mortgage will cost, how are any savings made on a lower interest rate affected by the fees you may have to pay, what is the SVR on the new mortgage, is the administration and customer service provided by the new lender up to the standard you expect.
Remortaging can be well worth while, but it’s a big decision and one with a significant number of variables to keep in mind. You should consider asking a professional to source the best deal or use our comparison site. If you wish to speak to an LGBT-friendly financial adviser, please enter your postcode under the map on your right, to find an adviser near you.
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