Mortgage payments are the largest expense in a typical UK household. It therefore makes sense to ensure that you are getting the best deal possible on your mortgage which means that you should remortgage your home if necessary.
If you are paying interest on your mortgage at the lender’s Standard Variable Rate (SVR) then you are probably paying more than you should be.
You should review your mortgage at least once a year and if necessary employ the services of an independent mortgage broker to give you an expert opinion on whether or not to remortgage to a different mortgage product.
Mortgage lenders are always looking to attract new customers and regularly offer discounts and other incentives to potential remortgage customers.
However, a remortgage is not always the best course of action to take, as they can come with hefty fees. Therefore your first task after evaluating your existing mortgage is to contact your current lender and find out if they will offer you a lower interest rate to stay with them.
Your current lender may be open to your proposal, especially if you tell them that if they cannot offer you a more competitive rate you will simply remortgage to a different lender.
If your current lender agrees to your proposal, you may save yourself time and money by not having to remortgage to a different lender.
However, if they do not offer you a better deal, you should compare your current mortgage to any other suitable remortgage products on the market that you qualify for.
This is where an independent mortgage broker can help. Independent mortgage brokers have special software that can scan the entire remortgage market, saving you the time it would otherwise take to conduct the research on your own.
If you do decide to remortgage, remember to account for any fees that may become payable, such as mortgage application fees to the lender and mortgage broker and solicitor fees.
If the overall expense of paying these fees outweighs the benefits of a lower interest rate on the remortgage product, it may be a better idea to stay with your current mortgage.
If you would like to remortgage your property, you should therefore perform a cost-benefit analysis to ensure you make the right decision for the long-term.
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