It’s no secret that remortgaging your property can be a great way of improving your finances and saving yourself thousands of pounds over the course of your mortgage deal.
But making the decision to remortgage is much easier than actually setting the wheels in motion and starting the process.
Whether you’re time poor or you’re scared that the process will be stressful, it can be tempting to delay your mortgage application and put it off until the very last minute.
It can also be hard to determine exactly when the best time is to make the move and start remortgaging. Here’s our guide to finding the perfect time to switch.
Familiarise yourself with the terms of your current mortgage
Do you know when your current mortgage deal ends? Do you know what your lender’s standard variable rate (SVR) is? It’s important to find out these details because when your current fixed period ends (whether it was 2, 3, 5 or 10 years), you’ll be moved onto your lender’s SVR and you’ll have to pay that rate of interest. This could see your repayments increase.
You can get this information by looking at your annual mortgage statement, checking your initial mortgage offer or contacting your lender.
Start comparing deals early
Generally, the sooner you start the mortgage comparison process, the better. This is because you can start comparing different deals and looking for the one that’s most suited to you.
If your existing mortgage period doesn’t end for a while, you might not be able to access the same deals you’re looking at now, but it can still help to give you an idea of what’s out there.
Getting the timing right to switch can be difficult
Although it’s wise to start comparing deals early, getting the timing just right to actually switch from your current deal to another can be a challenge. It can also cost you money if the transition doesn’t align. For example, leaving your current deal too early could see you having to pay exit fees, but failing to switch by the time your fixed rate period ends can see you being moved onto your lender’s standard variable rate until you remortgage.
Often, specific mortgage deals are only available for a certain period of time and mortgage offers can expire, particularly if a number of weeks pass or your financial circumstances change.
Some lenders will allow you to reserve a particular mortgage deal so that you can make the transition when your existing mortgage term expires.
Use a mortgage broker
A mortgage broker will help save you time and money by comparing a number of deals on your behalf and highlighting the ones most suited to you.
They’ll take your financial circumstances into account, paying close attention to your income, credit history and ability to repay prospective mortgages. They’ll assess how likely it is that lenders will approve your application.
Your mortgage broker will also look at the terms of your current mortgage and advise you on the best time to start your application and submit it to the lender of your choice.
To find out how TaylorMade can help you remortgage your home, please get in touch with our team today.
