WE
USE A RANGE OF
OTHER INSURANCE
PROVIDERS AND
THEIR PRODUCTS MAY
BE MORE SUITABLE
FOR YOUR NEEDS
Remortgage
A remortgage
is not the same
as starting
a mortgage all
over again,
on the contrary
it is merely
switching your
existing loan
amount over
to another mortgage
lender (bank
or building
society) to
whom the remaining
mortgage can
be owed. Comparisons
can be made
with switching
a balance from
one credit card
to another.
Most products
taken out with
lenders come
with “a
special interest
rate period”
which ends after
a certain duration
i.e. a two year
fixed rate.
At the end of
this period
your mortgage
will normally
revert back
to the Lender’s
Standard Variable
Rate (SVR) unless
you take a new
product with
the same or
a different
lender.
It is usually
a good idea
to seek a remortgage
a few months
before the end
of your special
rate period.
Your
existing mortgage
lender will
usually be relishing
the prospect
of you taking
your eye off
your mortgage
and paying their
Standard Variable
Rate.
They may also
offer you an
alternative
product usually
at an uncompetitive
interest rate
hoping that
you are loyal
– to their
profits! Remember,
if you are paying
more than you
should be then
each day is
costing you
money!
Your Smart Money
mortgage adviser
will be able
to find and
recommend the
best products
for you.
“Saving
money is only
a matter of
being aware
of all your
options and
there is no
time like the
present to find
out…”
Some
common conceptions/misconceptions
about remortgaging
are:
•
You don't have
to move home
to remortgage.
• It not
necessary to
pay fees –
products are
available that
include free
valuation and
free solicitors
and some even
include no arrangement
fee –
all you pay
is lower interest!
• You
can keep your
existing mortgage
term –
if you have
22 years remaining
on your current
mortgage, you
don’t
have to start
your mortgage
term all over
again –
you choose your
mortgage term.
• Loyalty
to your lender
is not a good
idea. Be loyal
to your money
not a bank.
• You
can book a new
product to start
after your tie-in
period (penalty
period) ends.
This can usually
be arranged
many months
before your
tie-in period
ends.
• Most
of the paperwork
is done by your
mortgage adviser
and the solicitor.
We do not normally charge a fee for mortgage advice, however this will
be dependent on your circumstances.
If a fee is charged our typical fee is 1% of the loan amount.
YOUR HOME OR PROPERTY
MAY BE REPOSSESSED
IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.
