Remortgaging? Things to look out for...

Remortgaging can be an attractive prospect for a whole host of reasons and if you’re going to take this route, you owe it to yourself to seek the very best deal possible. With this in mind, it’s vital that you pay close attention to the essential elements.

Here are four fundamental features that you cannot afford to overlook.

The Lender

It’s natural to assume that staying loyal to your current mortgage lender might unlock the best rate for your remortgage. Unfortunately, those sentiments couldn’t be further from the truth.

In fact, the biggest lenders actively charge their existing customers more than those moving over from competing lenders. This could cost you an average annual cost of £300, which is a little demoralising for any loyal client.

Switching lender will usually save money in the long run, and the impartial research of Pure Mortgage and Protection can help you find the right answer.

Fees

Like most homeowners looking to remortgage their properties, interest rates are probably the first thing you’ll look at. They’re important, but do not overlook the fees as well.

Some lenders will promote a low-interest rate, yet they’ll charge you a hefty fee for opening the account. This one fee could undo years of savings gained from the slightly lower interest rate. Other fees can include early terminations. You may also want to consider the insurance fees.

Ultimately, the right mortgage terms for one person won’t be right for another. Take the time to calculate what’s right for you, and it could save you some serious money. Pure Mortgage and Protection will make sure you are aware of all the fees and charges the lender has so you can find the best deal to meet your individual circumstances.

Property Value

The LTV (loan-to-value) rate relates to the amount of money being borrowed against the value of the property. And the lower it is, the smaller your interest rate will be.

Given that the property's value has probably increased since you took out the original mortgage, getting it valued again makes a lot of sense. Pure Mortgage and Protection can help you gain several valuations to ensure that your LTV is fair and works in your favour.

If the asset appreciation is quite low, this might not make a significant difference. If there is a big difference, though, you’ll want to see how this can impact your new mortgage.

New Contract Length

As your fixed rate comes towards its end, the current mortgage lender will put you on a standard variable rate (SVR) deal. This means you are missing out on an opportunity to get the best deal.

Switching might only generate a 0.2% saving, which may make you think it’s not worth the hassle. On the contrary, those annual savings of a few hundred pounds will amount to thousands over the duration of your mortgage. Of course, when extending the length, you need to factor this in.

Then again, shortening the mortgage could seriously lower the overall cost even if the monthly premiums increase.

Find the right balance between those various features, and you’ll be sure to acquire the best remortgage rate available. With so many deals on offer it can seem impossible to know if you have seen all of the options available, Pure Mortgage and Protection can help you make an informed decision with all of the options set out for you to consider.