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Remortgage – Top Ten Tips for a successful remortgage
Remortgaging has recently become more challenging and complex due to new Government regulations. The new regulations stipulate that borrowers must not be allowed to take on more debt than they can afford. Therefore remortgage deals will only be accepted for borrowers who can prove their financial stability and lenders will want a full audit of your income and outgoings. We have produced a list of our top ten ideas to help you get the mortgage you need.
1. Organise Your Finances
If you review your mortgage deal every two to five years and plan any possible remortgage in a systematic way, it will potentially be financially rewarding. Very often, the difference between people with a comfortable standard of living and those without is their ability to organise their finances rather than their salary alone.
2. When In Doubt, Ask…
When dealing with personal financial decisions of the size and importance of a mortgage or remortgage, one should always ask for advice. There is currently a wide array of products and rates on the market and the sheer level of choice can be overwhelming. This is where the services of a qualified mortgage broker can be of immense use.
3. Know Your Loan
Carefully look at your existing deal before you start to investigate a remortgage product. Are there any hidden pitfalls, early repayment or exit fees? Finding this out will help give you the necessary information on how expensive the whole transaction will be.
4. Look For Hidden Costs
Make sure you know exactly how much the remortgage will really cost you before you accept the deal. There is no point in switching to a mortgage that will save you money in the short term if the fees, charges and other costs actually wind up costing you more.
5. You Might Be On First Name Terms, But Don’t Be Fooled…
Remember your lender works for a business and the business takes care of itself. Don’t be fooled by the friendliness of your lender. Also remember, if there are extras and benefits in the deal, rate caps, cash back offers etc, the lender will have already included a way to claw back the money later on with interest. This isn’t to say offers should be rejected. But just be aware of what they are.
6. Look For Remortgage Packages
Consider specific mortgage offers tailored to you. The majority of offers apply to anyone who meets the eligibility criteria for a mortgage. However, there may be packages that are specifically designed for borrowers in your circumstances that might be more flexibility and cheaper in the long run.
7. We All Love Our Homes But…
If you over inflate the value of your home, you are bound to be disappointed sooner or later. Lenders will lend based on what they think the property will sell for, not what you would like it to sell for.
8. Your Credit Score Is As Important As Your Property Value
Credit checks are now an inevitable part of the modern mortgage process. We are living in a time when our financial history can be purchased and examined. Therefore it is important to make sure you know exactly what has been recorded about you before the lender does. You can obtain your credit score from Equifax, Experian and Call Credit. They can also provide advice about how to improve your score.
9. Get Your ID In Order
Your lender will want to know that you are who you say you are as countless frauds are attempted every single day. They will also want to check that you actually own the property you are wanting to remortgage. If you have your proof of ID, utility bills and Council Tax bill organised before you even get started, you will save yourself a lot of time.
10. Get Insured
Lenders look favourably on the insured. If your mortgage is protected against untimely death, long term illness, redundancy and other unforeseen problems, you will appear a less risky prospect to the lenders.