UK Mortgage Industry; What You Must Know

happyida By happyida, 29th Dec 2013 | Follow this author | RSS Feed | Short URL http://nut.bz/iv5yrmki/
Posted in Wikinut>Business>Investment

Finding a new mortgage could save you hundreds of pounds annually. A remortgage is a good way to take advantage of your home equity. If you are ready to make a move to a better deal, here are ten things that you need to know about remortgaging.

10 Things You Must Know

The remortgage marketplace contains a vast number of competitors who advertise the very best remortgage rate. What people don't realize is that the mortgage renewal period is actually a great opportunity to save money, or to pick up more favorable mortgage terms.

1.Shop Around for Better Rates
One of the best reasons to use a broker is that they aren't affiliated with any one lender and are more than willing to help you shop around for the best renewal rate out there. When the time comes to renew your mortgage make sure that you have as many options available to you as you can.
2.Free Transfer to New Institution
Most homeowners assume that when they transfer to a different lender they are going to have to pay a transfer fee, but this isn't the case. The new lender who agrees to pick you up for your mortgage renewal will pay the transfer fees for you.

3.Start the Renewal Process as Soon as Possible
Begin looking for the best renewal rate about six months before you are actually due for the renewal. Starting earlier gives you the time you need to really do your homework and find the best deal out there.

4.Choosing a Mortgage with New Terms
It's simple to renew your mortgage with exactly the same terms that you were following previously, but that may not be in your best interest. A mortgage broker can help you look over options like this and determine what will work best for you.

5.Don't stick with your SVR mortgage longer than you need to
There are more than half a million home owners wasting hundreds of pounds every year by not switching from their lender's standard variable rate (SVR). Don't be one of them.

6. Beware of redemption penalties on your mortgage
Penalties can cost thousands, so make sure you get full information on any charges from your provider before switching. There is no point having any savings wiped out by the penalties.

7. Cutting costs by paying the fees
You can find mortgage deals that cover some of the remortgage fees for you. Fee-free deals tend to have higher rates than deals where you pay the fees. The rates tend to be up to a quarter of a percentage point higher than remortgage deals where you pay the fees.

8. Fixed or tracker?
Mortgages that track the base rate with a discount are usually cheaper than fixed rate deals. They are great if the base interest rate remains stable or drops, however if it rises, so will your rates.

9. Don't get carried away with the base interest rate
Unless you are an experienced economist it is best not to try to second guess the Monetary Policy Committee by waiting for rates to fall before switching mortgage deal.

10. Do you need to remortgage for the equity?
Releasing equity in your property by remortgaging can be a much cheaper way of borrowing than credit cards and personal loans.

Tags

Mortgage, Mortgage Account Online, Mortgage Broker, Mortgage Brokers, Mortgage Loans, Mortgage Payment, Mortgage Rates, Uk Mortgage

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author avatar happyida
I am an Expert Writer contributing content on self-Improvement,finance,business tips and poetry.

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Comments

author avatar Rose*
8th Mar 2014 (#)

Also - find a mortgage that you can overpay without penalty - overpaying regularly can shorten the term of your mortgage

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