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Author: Elliott Culley - Director & Mortgage Adviser of Switch Mortgage Finance
Your mortgage is coming to the end of its fixed term period and you are thinking when should I remortgage? How do I get the best possible deal? Should I remortgage with my existing lender?
Just like when you search for the best deal for your gas or broadband, you should be doing the same for your mortgage. If you don’t you will end up moving onto the lenders standard variable rate and your payments will increase. You do not want that.
When Should I Remortgage?
You should start to look at remortgage options 6 months before your new rate is coming to an end. This is when your current lender can offer you a new deal and mortgage offers from other mortgage lenders are valid for 6 months on average.
You may think 6 months is lots of time to sort out your renewal, but if you are moving lender it can take some time to organise, so it is always best to be prepared.
Should You Wait to Remortgage?
We would always suggest you secure a new mortgage rate as soon as possible.
Every month we come across clients who have either left their remortgage to the last minute, or in the current climate wanted to see if rates would reduce before securing a new rate.
The mortgage market can be extremely volatile. If you wait, you may get lucky and rates reduce before you need to secure a rate, or you may find rates are higher than if you had secured when you first had the chance.
A much safer strategy is to lock a rate in when you first get the opportunity. This then guarantees you that rate and means if rates rise you won’t be affected.
However, if rates reduce it is a simple process for a mortgage broker to change you to this product. We are told about new rates from lenders straight away so you know you will always be in the best position.
This strategy has the potential to save you hundreds if not thousands of pounds, so don’t wait and see, take action as soon as you can.
Speak to an Expert!
Contact us today for expert advice and guidance on your unique mortgage and property needs. We will work with you on a one-on-one to basis to help you find the right solution for your needs.
With our experience you can rest assured that you are in good hands when it comes to securing the financing you need for your property.
How Do I Get the Best Possible Mortgage Deal?
It’s the same concept as when you are looking to renew your broadband, you need to shop around.
However unlike your broadband, mortgages can be far more complex and you won’t always qualify for the cheapest deals.
You need to pass the lenders affordability test and need to fit their criteria. A mortgage broker can assist you and find the best mortgage deal for you.
Should I Remortgage With My Existing Lender?
Your existing mortgage lender will contact you 6 months before your renewal date and will offer you a new mortgage product. But you may be asking yourself, should I remortgage with my existing lender?
The pros are it’s a much quicker process and you don’t need to pass any affordability tests. However sticking with your lender is not always the cheapest and some mortgage lenders offer better rates to new customers rather than their existing lenders.
Don’t waste your time trying to negotiate, that won’t be possible. Always check other rates or speak with a mortgage broker they will tell you if the mortgage is the best option for you or whether it will be cheaper to move elsewhere.
Why Use Switch Mortgage Finance?
We know you want a mortgage broker that understands your financial situation, who works with mortgage lenders, and who gets you the best deal.
That is exactly what we do at Switch.
By entrusting us to look after your mortgage needs, we will make sure you get the best mortgage for you.
Why Switch Mortgage Finance
- Raising The standards of financial advice
- Making financial advice accessible to all
- Trusted & stress-free financial advice
- Friendly, personable advisors