How to Find a Remortgage

An increasing number of borrowers in the UK now recognize that a remortgage option is more beneficial for them compared to getting a new mortgage. Popular reasons for a remortgage option include:

1. Getting better deals compared with your current lender;
2. Using remortgage to increase additional finances by releasing your property’s equity;
3. Acquiring lower or discounted interest rates;
4. Reducing your monthly outgoings by up to 50%;
5. Getting the opportunity of clearing your existing mortgage, including any arrears or other debts;
6. Consolidating your current loans into a more manageable monthly payment;
7. Freeing restrictions on what you do with any extra cash you have obtained; and
8. Getting the chance of borrowing more money and still pay the same or even less than your current mortgage payments.

But before you go ahead with this loan option, it is always a good idea to first consult with a loan expert or a remortgage specialist. Shopping around for the best remortgage deal might be daunting, if you do not know where to look and what to ask. So how do you find the best remortgage deal in the market? You can go to high street banks or lenders such as Barclays, Bank of England, Halifax, HSBC, Nationwide just to name a few, or you can consult with mortgage brokers or even contact internet brokers such as Money Beacon.

Just bear in mind that the market nowadays is fiercely competitive where every lender is keen on attracting remortgage business, competing to provide the best deals. More and more lenders are now prepared to offer you a range of deep discounts, low, fixed and competitive capped rates just to get your business. But, these attractive offers might be misleading, and could lead to more drawbacks in the long run compared to your existing mortgage.

That is why it is crucial to find the remortgage lender that best meets your needs, giving you more benefits than risks. You may refer to the following questions as your guidelines on what to ask remortgage lenders.

1. For attractive interest rates, be sure to ask whether they will continue this offer in the future – you can review the lender’s Standard Variable Rate (SVR) which provides a measure of the remortgage lender’s current competitiveness. If you see a low rate trend, this means that the lender is looking after its current borrowers as well as new clients;/li>

2. Ask for how much savings or special benefits you get for the remortgage, compared to your existing mortgage – the lender should be able to provide you with clear calculations or quotes; and/li>

3. Ask if there are fees involved and how much. Lenders often charge valuation and legal fees, other lenders charge varying loan-processing fees, exit fees are sometimes charged by an existing mortgage provider, or your new remortgage lender might charge set up fees.

Money Beacon can assist you in finding the best deal. Just complete a short form on our website and a remortgage specialist will promptly get in touch with you.