Identifying a Good Remortgage Lender Is Key, Here’s How To Do It…
One of the major choices you will face when remortgaging is deciding which lender to approach. If it has been a few years since you last shopped around for a mortgage it can be tough to find a lender as there are many new names in the market. Our guide explains how you go about choosing your remortgage lender.
Use a Mortgage Broker: Mortgage brokers are professionally qualified individuals who have an unparalleled knowledge of the mortgage market. They can help you find the best deal and lender for you as well as accessing exclusive remortgage products that may not be available to the general public.
The only negative to employing a broker is the fact that you tend to have to pay a fee for the service, normally upfront. This doesn’t have to be a major problem however for two reasons. Firstly the savings you make over time will outweigh the losses, and secondly, it is better that you pay a mortgage broker and get independent advice, than the mortgage lender pays the broker and ensures that you get the advice the lender wants you to get.
Another advantage to using a broker is that when you use a financial adviser, you can also arrange to pay for all your additional financial products as well. You will need insurance cover and other issues to be dealt with at the same time
Do Your Own Research: Undertaking your own research can also be a good way of finding a remortgage lender. Friends and family who have recently remortgaged may have recommendations, although it is often worth looking at facts and figures for you to find the right remortgage lender.
By using a mortgage adviser, you can also get advice on other areas of your financial planning that are related to the remortgage, such as life cover and cover against mortgage repayments, so this is another great reason to use an adviser as you can deal with all of your needs ‘under one roof’.
Get Remortgage Quotations: Obtaining illustrations from remortgage lenders will help you compare the monthly repayments as well as any fees or charges that are involved. And, it is also worth speaking to your current mortgage lender as they may have a range of ‘retention’ deals designed for existing borrowers.
Think About What Mortgage You Would Like: The range of remortgage lenders available to you may also be determined by the type of mortgage deal that you are looking for. For example, if you specifically want a ten year fixed rate, there may well only be a limited number of lenders who offer that type of product.
Perhaps one of the msot sensible things to do is to check what your existing lender can offer, because, depending on what kind of deal you are looking for, determines what lenders might be appropriate for your needs. Your own lender might possibly have a deal to keep your custom.
There are so many lenders and so many products out there, so it is vital that you take your time and make sure that you learn about the lenders inside out before making your final choice.
Timothy Frodsham writes for JustRemortgages.com one of the UK’s
top sites for the latest remortgage rates and best remortgage deals.