Finance
How a Timely Remortgage Could Save You Thousands of Pounds
For most homeowners, the prospect of going through a second mortgage application is far from appealing. Mortgage applications have the potential to be drawn out and complex at the best of times, particularly as most High Street lenders continue to deal with unprecedented demand.
Considering a competitive remortgage deal at the right time could save any number of homeowners a small fortune on their monthly repayments. Mortgage debt can have a significant impact on a household’s budget; though can often be reduced by knowing when and where to make the switch.
Moving from the Lender’s Standard Variable Rate
When the introductory fixed-rate period of your mortgage comes to an end, it will automatically transition to the lender’s standard variable rate. This could result in a major uptick in your monthly repayments as the interest payable on your mortgage suddenly increases.
Prior to this automatic transition occurring, it is worth taking a look at what is available elsewhere. It may be possible to take out an entirely new mortgage with a new lender that has a significantly lower introductory rate of interest. Perhaps you can negotiate a better deal with your current lender or an agreed fixed rate of interest for a set period of time.
Either way, the lender’s standard variable rate is usually way higher than the other deals available. If in doubt, consult with an independent broker and have them compare the market on your behalf.
Overpay Where Possible
Historically low interest rates have seen many mortgage payers benefiting from reduced monthly outgoings over the past few years. This is something that looks set to continue for some time, making now the perfect opportunity to consider overpaying on your mortgage.
If there is any possibility of repaying your mortgage early, it is an option worth considering. Even by paying off your mortgage a few years earlier than initially agreed, you stand to make significant savings long-term.
Just be sure to factor in any early repayment fees or penalties which may apply, in accordance with the terms and conditions of your mortgage agreement.
Consult With an Experienced Broker
The quickest and easiest way to determine whether you could make significant savings on your mortgage is to consult with an experienced broker. An independent specialist will help you make sense of the various options available and determine which is suitable for your budget.
It is important to bear in mind that some of the most competitive financial products on the market are available exclusively via broker introductions. This includes a wide variety of home loans and specialist secured lending products such as bridging loans which are not available from the main High Street lenders.
Whether you are interested in remortgaging to avoid your lender’s standard variable rate or considering overpaying to reduce the term of your mortgage, you will find the help and support of an experienced broker invaluable.
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