Remortgage Advice – What To Look For
Fixed-rate to a New Deal
If your current fixed-rate mortgage deal is set to end within the next 6 months, now is probably a good time to start looking for a new deal. It is possible interest rates could change between now and the end of your current product. A local mortgage broker can offer insightful remortgage advice.
In the past, offers for a remortgage only lasted for 3 months. Nowadays it is much more convenient for lenders to hold offers open for 6 months. This allows you to solidify a deal in advance, as well as minimising the period of lapsing onto the standard variable rate. If you are really organised, you might spend less than 24 hours on a standard variable rate when the time comes to switch over!
Retention & Product Transfer
The lender you’re currently with may offer you a new deal to stay with them. Then again, they also may not. Annoyingly these “retention” or “product transfer” mortgages are often not as good as the deals offered to brand new customers. This shows that some of the larger companies, unfortunately, have no customer loyalty.
Your current mortgage provider will know that you will need to provide documentation to your new lender if you switch away. This creates the hassle of switching elsewhere, which your current lender will take advantage of. They do this by providing an easy and slick service on a very average product. Watch out with this!
A good broker will recommend that you stay where you are if the savings are minimal or non-existent. However, if you don’t shop around you will never know!
If you stick with your current lender, and not sign into any new deal, then your lender loves you, as you will be on their standard variable rate and paying back more each month.
Fast-forwarding to the future, technology may make the process of switching lenders much quicker. However, you can’t beat real people and for a little bit of hassle on the phone, speaking to a mortgage advisor and sending over some documents, you really can save yourself a lot of money.
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