If you’ve decided to remortgage your home, whether it’s to benefit from a better interest rate, reduce your monthly repayments or free up equity for a large expense, there are a few steps to take in preparation.
Compare multiple deals
Chances are you want to complete the remortgage process as quickly as possible. After all, your time is precious. However, jumping into the first new deal you see could result in you missing out on an even better deal.
It’s wise to compare a multitude of mortgage deals before making a decision. A mortgage broker will help you every step of the way, comparing deals on your behalf and highlighting the best ones before guiding you through the remortgage application process.
Check your credit score
This may come as a surprise to some, but just because you already have a mortgage doesn’t guarantee that you’ll be able to secure a new one. When remortgaging your property, you’ll be expected to jump through many of the hoops you experienced when you initially applied for a mortgage.
Potential lenders will want to ensure you’re financially stable and have a good track record for repaying debts. As part of this, they’ll look closely at your credit score. If they find anything on your credit report that raises concerns, your application could be rejected. To make matters worse, a rejected application can actually make your credit report even worse. Therefore it’s wise to check your credit score yourself before submitting an application.
Reserve the best rate you find
Not many people know this but it’s often possible to reserve a particular deal if you spot a great interest rate, even if you don’t plan on actually remortgaging for a few more months. Think of this as a safety net and, if you happen to spot a more attractive deal at a later date, you can often abandon the first one in favour of the second.
Of course, as wise as it is to play the field until you find the right mortgage for you, avoid applying for too many. As we explained earlier, every application will be logged on your credit report and it could reflect badly on you if you apply for too many.
Work out whether you’ll need to pay fees
When remortgaging your property, you may have to pay fees to your current lender in order to leave the mortgage you have now. These are often called early repayment charges and/or exit fees.
You may also have to pay admin fees to both your current and future lender, even if you’re sticking with the same one!
Before applying for a new mortgage, do some calculations to work out exactly how much a remortgage will cost you. Often, the savings you’ll make in interest can far outweigh your fees, making it a worthwhile investment, but it’s wise to do some maths to be on the safe side.
If you’d like help remortgaging your property, please get in touch with the team at TaylorMade. We can assess your finances on your behalf and work out whether remortgaging is a cost effective move for you. If we believe remortgaging is a wise decision, we’ll guide you through the process every step of the way.
