Remortgages

Remortgaging is something that most homeowners will do at some point. If you want to get on the next rung of the property ladder by moving house, reduce the cost of your current mortgage deal, consolidate debt or finance improvements to your current house, remortgaging could be the way forward.

Remember that finding a competitive remortgage deal should make a real difference to your finances – a mortgage is probably most people’s biggest monthly expense, so getting a better deal could save thousands. But, it goes without saying that to secure the best deal possible, you need to compare as lots of mortgages before committing to the remortgage process . That’s where Mortgage Buzz can help.

Types of remortgage deal

Like most of the other categories of mortgage, there are several different types of remortgage deals to choose from. The right one for you depends on your current, and likely future circumstances. If you like to have certainty over your repayments a fixed-rate remortgage could be right, but might cost you if the base rate drops. Similarly you could be quids-in if interest rates go the other way. Other popular types of remortgage include:-

• Tracker remortgage – linked usually to the Bank of England base rate;
• Flexible remortgage – allowing borrowers to overpay or underpay as it suits;
• Offset remortgage – linking borrowers’ savings and current accounts to the mortgage, reducing the interest paid;
• Standard variable rate remortgage – linked to the base rate but usually a few per cent higher

Obviously, there are other types of remortgage product to consider, all with different pros and cons. To find out more about the different options if you are remortgaging, take a look at our remortgage guides.

What you need to know about remortgaging

We’re in a tighter mortgage market than a few years ago, thanks to the credit crunch of 2008. That means first time buyers who took out 100% or even 125% mortgages could struggle to remortgage on similar terms with a new deal. It might take a few years of building more equity in the property to be able to switch mortgages, as many lenders now stipulate lower LTV (loan to value) percentages. In practice many will not lend more than 75% of the property’s value.

Other things to remember when remortgaging:

• Early redemption charges (ERCs) are often payable for borrowers remortgaging part way through their current deal;
• Remortgaging usually carries with it arrangement fees – although lenders keen to keep current borrowers on their books are increasingly waiving these to avoid losing customers;

Remortgage quotes and advice

Because a mortgage is such a large part of most people’s outgoings, remortgaging shouldn’t be rushed. Taking to time to understand which mortgage type suits you and what you want to get out of remortgaging is an essential step. Obviously, this depends on why you are remortgaging – whether it’s to move to a more expensive house or to save money.

Simply fill in a quick form and our FSA authorised mortgage experts will do the hard work, comparing the best deals from the whole of the market on your behalf. It’s a no obligation, no pressure service and we are not tied to any particular lender. Our aim is to find you the right deal so you’ll recommend us to others!