Five ways to get your remortgage right

Most fixed or tracker rate products usually have a set amount of time before they expire and revert to the lenders Standard Variable Rate: the initial term might be  two, three, five or even 10 years.

When that period comes to a close, it’s sensible to look at a ‘remortgage’ – the transfer of a mortgage from one lender to another.

Most people do this for two reasons. The first, to borrow extra money against the value of your house, say to build an extension or get work done. The second to get a better deal, ideally one with a lower interest rate than the one you’re currently on.

So, how to do it properly? Here are our five tips for getting your remortgage right.

Prepare in time

When it comes to remortgaging, timing is everything. Around six months before your current deal expires, get in touch with your adviser here at Charles Cameron & Associates to start exploring your options. Then, around three months  before your deal ends, we will provide you with a recommendation on the most appropriate product for your circumstances and we will begin the remortgage process with you. Remember, your current lender could charge you a penalty fee of around three to five percent of the mortgage value if you repay the loan before their deal ends. Therefore, you need to time it so your new mortgage starts as the old one finishes. Don’t worry, we’ll help you by making sure we time things correctly.

Don’t be swayed by cheap rates

A super-low interest rate is certainly something worth investigating. However, a too-good-to-be-true deal often means a higher ‘arrangement’ fee – the money you pay to the lender when you take out a new mortgage. The key is to work out how much you’ll be paying in the long run: sometimes you actually save money going for a higher interest rate as it may mean a lower arrangement fee. Again, we will make sure the product recommended to you takes this all into account.

Make sure your property is in order

When you apply for a remortgage, your new lender will conduct a valuation of the property and could send a surveyor around to make a report. That’s why it’s sensible to make sure your home is in as good a condition as possible. Any structural damage, damp or serious wiring/plumbing issues may reduce the value of your property and might cause the lender to withdraw or reduce their offer.

Take into account the legal stuff

Even though you’re not moving anywhere, there are still legal procedures to follow.

When you remortgage, you have to pay a ‘deeds release fee’ to your current lender to send the deeds of the property to your solicitor. There will also be a ‘conveyancing’ charge, which covers the transfer of your current lender’s interest in the property to the new one. Often, the new lender will pay for this.

Stay with your current lender?

When we search the whole of the market for the most suitable mortgage product for you, we will also check what your existing mortgage provider can offer. If you would be better off staying with them, we will let you know what they have available to existing customers and can even handle the paperwork and product transfer for you. That way you’ll save time, hassle and money.