Remortgaging is another financial opportunity for you to reassess the existing mortgage rates on your loan. Compare the difference that has been created due to change in the interest rates from the time you took your present deal. It is important to understand that it is the overall cost or Annual Percentage Rate that needs to be re-evaluated in perspective to your existing contract.
Compare this with the deals being offered in the financial circles.
REMEMBER TWO THINGS
Before you rush to remortgage do gauge your existing deal in view of the following two reasons. The first thing you need to know is that interest rates are fluctuating on a regular basis and the present good remortgage deal may not be available when your change of deal takes effect. The next important thing to remember is that to arrive at a better understanding of the decision to remortgage is considering all expenses and fees that will be incurred.
THE TWO REASONS FOR REMORTGAGING
Keep your eyes open for the alert signals that may indicate that you need to remortgage. There are two compelling reasons to check into refinancing your home. The first reason is to save money and the second is to raise money.
Saving is a key driving factor to seize the opportunity to change to lower monthly repayments or take advantage of lower interest rates. A point to be noted is that most Brits are paying more, whereas, they could have been saving the extra money being dished out.
RAISE MONEY TO REMORTGAGE
The equity build in your home can be cashed to raise money to consolidate debts or do home improvements.
OTHER REASONS TO REMORTGAGE YOUR HOME
There are other reasons that can be considered to remortgage. For example, you as a homeowner may switch over to a new cheaper mortgage provider who is willing to offer a better deal in order to get your business.
Your existing fixed-rate period is nearing or a discounted deal is coming to an end.
In case you like to stick with your current mortgage provider to avoid costs and fees of remortgaging with another lender then remember you may be shifted to the (SVR) standard variable rate. It is not an ideal deal.
Your financial situation has changed and the current mortgage is contrary to the circumstances. Hence, the need to adjust accordingly and find a better mortgage company with different terms and conditions.
KEY FACTORS OF REMORTGAGING
There is cost and fees when remortgaging with another lender. The process time is about a month to complete the paperwork and get the house evaluated. Hunting or searching for the mortgage deals that best suit your financial circumstances.
Look for the best possible lowest interest rates.
Examine closely the remortgages that are available-fixed remortgage deals or discounted deals or tracker mortgage rates.
Fixed remortgage rates are when a certain period is fixed during which the repayments are guaranteed at that rate.
Discounted or tracker rates are attached to another rate like the Bank of England Base rate, to establish the amount of interest that you shall pay on your remortgage. The lender may also link your rate to SVR (Standard Variable Rate). Last but not least make it certain that you do qualify. Remortgage your right to get the best deal.