You can also remortgage when the interest rates keep changing. If you are on a fixed rate and the interest rates go down, you may find yourself paying over the odds. If you are using a variable interest rate and there seems to be a likelihood of the interest rates rising, you might want to move to the fixed rates.
When opting for a remortgage, it is important that you first check if your current mortgage has any early repayment charges. You also need to find out how much your lender by asking them for a written redemption statement.
The next step is deciding whether you need to make changes to your loan’s terms. For instance, whether you wish to extend the term or borrow more money. Then consider what type of deal you want. If for example, you choose a new mortgage plan, you need to make a choice between a variable and fixed rate and consider what type of each you prefer. You then take into account what is available and ensure you allow plenty time before your current mortgage ends.
Once you have settled on a particular deal, compare the repayment terms with the current ones. Ensure that you take note of all the mortgage costs associated with this new deal including the arrangement fees. These rates should be included in the annual percentage rate (APR) as quoted by your lender.
There are several things that you need to consider while remortgaging.
• What are the penalties for opting out of your current mortgage deal?
• All the fees associated with the new deal
• Fees you will incur if you deal with a mortgage broker
• Any legal fee associated with remortgaging
• It offers you with the chance to borrow at a lower interest rate
• You have the option of using your home’s equity for additional money
• Opportunity to switch to a more deal that is fitting your current financial situation
By stretching your debts to a longer time frame adds more to your overall cost
-The process can take much time
-There are fees that are attached to remortgaging
-When you use your home as collateral, it can be repossessed if you don’t make the payments as agreed
Expert advice is recommended when remortgaging. You can contact us at MAS anytime you have issues or need advice on remortgaging https://www.mortgageadviceservices.co.uk/remortgaging/