Are you coming to the end of the contract with your current mortgage lender? Fed up with paying through the nose for those hefty monthly repayments? Perhaps you are looking for a large cash sum to fix that roof, add an extension, or fit a new kitchen or bathroom? By switching mortgage lenders you could save a small fortune in interest payments, reduce the term or get a more flexible mortgage with additional features like overpayments or payment holidays.
The remortgaging process has certainly become much easier. More and more mortgage lenders now offer specialist remortgaging services, often including free legal and arrangement fees as part of their deals. So if the deal with your current mortgage lender is coming to an end, or you need a large cash sum, Moneyfacts.co.uk has five top tips to guide you through the process of switching mortgage lenders.
A word of warning - although remortgaging can be a sensible option for many borrowers, it may not suit everyone. If you only have a short period before your mortgage is paid off in full, or have a mortgage with large redemption penalties, the costs involved with remortgaging may outweigh the benefits. Also bear in mind if you are remortgaging to release equity, the debt is secured on your home, so if you don't keep up with repayments, you risk losing it.
So take the time to analyse your current mortgage carefully, and if you are paying over the odds, don't be afraid to switch lenders.
Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.
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