If you’ve got a mortgage, at some point you would be wise to consider ‘remortgaging’ – the process of negotiating a new mortgage deal when your current deal expires. Otherwise, by staying with your current lender without remortgaging it is almost certain that you will find yourself put on the standard variable rate (SVR), which could mean you will be paying a higher rate of interest than the one you’re currently on.
Aside from avoiding a potentially costly SVR, people remortgage for two main reasons. The first could be to access a better rate than the one they are currently on. Your adviser will be able to compare all deals on the market to see which lender and product is best suited to your individual situation, starting with your current lender’s product transfer offers (for more information on the differences between Product Transfers and Remortgaging click here).
Another reason to remortgage is to use the equity your house has accrued to finance something else – e.g. building works or to help your children buy a place of their own.
However, when is the right time to apply?
While your head may be turned by tempting offers during your current mortgage term, you should only formally apply for a new deal three-to-five months before your current one ends.
Whether changing lender or staying with your existing one, it is best to apply in plenty of time to get your new mortgage arranged, as most mortgage offers are valid for a few months. That way you have the certainty and peace of mind of everything being in place with no risk of switching to an SVR.
We recommend you contact us at Charles Cameron & Associates at least 6 months before your mortgage deal expires. We can then research the market and so offer you as wide a choice as possible.
As we’re not tied to any particular lender, we will give you impartial advice and recommend the best mortgage for you from the whole of the market. We will also be able to guide you through the process and make sure any bumps in the road are safely navigated.
If you’re lucky enough to own a property, remortgaging is usually a straightforward process. It’s just a question of ‘right time, right lender’ so contact us for the ‘right advice’.