Remortgaging
Remortgaging is switching your exisiting mortgage to another mortgage lender, in order to lower the amount you're paying on your mortgage. You are not obliged to stick with your original mortgage lender for your full mortgage term. You can move to another lender at any time to get a lower interest rate – you don’t have to be buying a new home.
Remortgaging can be well worth it, saving you hundreds or even thousands of pounds a year. You may even be able to get a better rate from your existing lender – avoiding the time and expense of remortgaging – simply by threatening to leave.
But don’t accept any offer without finding out if you can get a cheaper deal elsewhere. And don’t do anything without checking if there is an early redemption penalty on your existing loan, as this could more than cancel out any savings you would make by moving.
Also, when you’re comparing deals, it’s essential to take the set-up fee (also called an arrangement or reservation fee) into account, along with the valuation and solicitor’s costs.
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