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A remortgage in simple terms is moving your mortgage from one provider to another or changing the type of mortgage you have. Remortgaging has the potential to save you money by reducing your payments, or through shortening the term of the mortgage while you pay the same price, or by lowering the amount of interest you pay on the mortgage.
A mortgage is a fairly simple process it is borrowing a large sum of money to invest in a property whether for a home or for buy to let. You borrow the money from a mortgage lender for a specified length of time and pay a percentage of interest on top of the amount borrowed with varying terms and different ways the interest can be accrued. A range of great rates and options are available to you whether mortgaging on a new property or remortgaging an existing property. There is a wealth of different mortgage types available so you are sure to find one perfect for you.
Getting a mortgage or remortgage is also much cheaper than people realise. Fees if any, which are accrued when you mortgage or remortgage can be added to your mortgage and so can be paid off over a longer period of time. Remortgaging is a much more affordable option if you are trying to cut down your household bills.
When you submit a lead we put you in contact with an advisor, it is best to speak to an adviser when you are getting a mortgage because as it is for a large sum of money it is important to make sure you are getting the best possible deal. It is also essential that the advisers are comparing the whole of the market. This means that they are not limited to a set of listed providers, instead they can compare all mortgage lenders and get you the best deal possible.
Fixed rate and Variable Mortgages
A fixed mortgage will have a set payments and a set period of time in which you must pay. This can offer the security of knowing that if interest rates increase your mortgage rate won’t. However if you want to get out of the mortgage early you will be faced with an early repayment charge. Variable mortgages on the other hand are flexible. The rates can increase and decrease so your monthly repayments can change over time. There are two types of these mortgage tracker or discount.
Trackers and Discount
Tracker mortgages are directly linked to the Bank of England base rate. If this rate goes up or down so will your mortgage repayment. Trackers are seen as being more transparent and are fairer for the borrower. Where as a discount mortgage is not linked to the Bank of England’s base rate it is instead linked to the lenders standard variable rate (SVR). The SVR is at the lenders discretion, so your mortgage could change even if there is no change to the base rate and there is no guarantee that if the base rate does change that the SVR will do the same.
Term of Mortgage
When taking out their first mortgage most people opt for one over a term of 25 years. The longer you take the mortgage out for will have an impact on the monthly repayments, typically a longer mortgage will have lower monthly repayments compared to a shorter term but you will be paying it back over a longer period of time so the overall cost is more expensive, the shorter the term the sooner you will be mortgage free.
Remortgaging Can Save You Money
For homeowners with a mortgage of £100,000 over a period of twenty years switching your mortgage rate from 4% to 2.38% will mean a saving of £81.42 every month. This sum over the course of a year is a saving of £977.04. It is definitely worth comparing your mortgage today to see what you could be saving. If you are remortgaging make sure you decrease the length of your policy each time. If you’ve just come out of a 25 year fixed rate mortgage for 3 years your remortgage should be for 22 years.
Remortgage With Us
Compare mortgage rates quickly and easily with Beat Your Quote. We have whole of market mortgage advisers ready to find you the best mortgage for the cheapest price. They compare all the top brands to find a mortgage tailored to suit your needs. With mortgage rates as low as 2.38% now is the perfect time to consider remortgaging. Speaking to us ensures that you have a dedicated adviser to make sure you are fully informed of your options and that you are secure in your choice. We are the comparison site you can talk to.