Remortgages and Rate Switching
Remortgages and Rate Switching can be really quite easy.
The first, and probably most obvious time, is the end date of your existing mortgage deal. This is an ideal time to switch products. By not remortgaging at the end of your current rate term, it’s likely you’ll end up on your lender’s Standard Variable Rate. Probably meaning your repayments will go up.
When can I Remortgage or Rate Switch
If you’re on a deal without a set end date, it can be a bit more difficult to know when’s a good time to change deals. But if you keep an eye on our mortgage sourcing system it’s possible to spot when’s a good time.
Changes in personal circumstances can signal when it’s time to remortgage. House prices might have increased. You might have paid off enough of your mortgage, to be able to move down a Loan to Value tier. Or you may want to borrow more money, for example for home improvements.
Remortgaging can provide a perfect opportunity to increase your mortgage.
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Things to consider
There may be times when you’re in the middle of a deal with a set end date, but mortgage rates have decreased. This could mean there’s a chance of saving money by remortgaging early. However, watch out for early repayment charges. So, before you take the leap, speak to a mortgage adviser. Make sure you’re saving money by switching mortgage deals.
Similarly, the best remortgage deals don’t always have the lowest rates. High arrangement fees need to be considered. The true cost of a remortgage could end up higher even if the rate is lower, when fees are involved. Look at the big picture to get a better idea of what you’re getting yourself into.
How long does it take to remortgage and rate switch?
Remortgages and Rate Switching can be quick when sticking with your current provider. But it could take as long as two months, even more, when switching to a new lender. But, don’t let a longer timeframe put you off switching to a different lender, the benefits can outweigh the effort.
With these timescales in mind, it might be a good idea to start looking for suitable remortgages at least a few months before your current mortgage deal is due to end.
Should I use a mortgage broker ?
One drawback to using a broker has been fee charging. Don’t despair about fees. We’ve advised lots of people to re-mortgage and don’t charge fees; we helped lots of people throughout the entire mortgage process. Try us out and join our growing list of satisfied customers.
Can I apply early for a re-mortgage and rate switch ?
Yes, you certainly can. There’s no need to wait until your current deal has finished. In fact, it’s generally considered good practice to start looking a few months in advance. By doing so it’s more likely that you will not accidently end up falling back on to your current lender’s SVR. Many of our clients set things up as much as 5 months before their existing scheme is due to end.
Can I borrow more ?
Yes. However, there are restrictions. It’s best if you discuss your mortgage requirements with an adviser. Be aware that Remortgages and Rate Switching have different application ways and it’s probably best to discuss your requirements with an adviser.
Do I have to have my home revalued ?
If you are moving to a different provider or trying to move to a lower Loan to Value tier, it’s likely you’ll need a new valuation. If you’re sticking with your current provider that’s not always the case. But many valuations are free these days anyway.