Reviewing your mortgage is paramount. If you do not and your current deal ends you will revert to the lenders standard variable rate which can be higher than the rate you are on and result in unnecessary payments; although sometimes the flexibility this rate offers is worth the additional cost. However if you do not need to be on a flexible mortgage, your lender will be able to offer you a new range of products as will the rest of the market. These are what we call Product Transfer products, which in most cases we can be involved in and process on your behalf.
It is always worth reviewing your options and we recommend starting this process 4- 6 months before your current deal ends.
The re-mortgage process with a new lender is very similar to that of buying; in that you need to apply in full. A new valuation will be carried out and solicitors are involved to complete the re-mortgage so there are also costs involved.
Most lenders will offer a free re-mortgage package which can include a free valuation, free legal costs and sometimes cash back to save you on upfront fees however there will also be products which don’t offer the fees assist package and it is worth reviewing all options to ensure the most suitable product is found.
Sometimes the lowest rate does not mean the cheapest product.
Its at the re-mortgage time that the ability to release equity from your property becomes more easily available. The main reasons for equity release are: home improvements, property purchase, debt consolidation and divorce and separation payments.
Keep a clear note of when your current deal ends and plan in advance.
If you want to change the mortgage term or make an overpayment you can look to arrange this at this time.
If you have bought a property on your own but now live with someone else you could also consider adding them to the mortgage, but remember this will take time and it is advisable to get advice from your solicitor.
Check what your lenders standard variable rate is and be aware of what you may revert to if you do not change products in time.
You can also remortgage during a tie in period, but be aware in most cases there will be penalties to do this. People may do this if they want to switch to a lower rate or they are removing someone from the mortgage due to divorce or separation.
Click here to contact us to assess your options.