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Mortgage? Remortgage? Contact this mortgage specialist for the best deal for you. No fee option Remortgage and SAVE
NEARLY half of all homebuyers are paying the banks' standard variable rate on their home loan - almost without exception, the most expensive rate going. And some 70% of homebuyers have never bothered to remortgage in spite of the fact that they could almost certainly save about 1.75% in interest charges. On a £100,000 home loan this is a saving of £1,750 a year, or £145.80 a month. However care has to be taken that the lenders don’t add all sorts of extra fees for remortgaging to make sure its worth the effort. For example, exit fees, such as deed release fees, have gone up and now average about £150, with some lenders charging around £200. Another trick by lenders is to charge interest until the end of the month if you switch lenders, even if you repaid the loan at the beginning of the month. With a big loan, this could easily mean a hidden 'exit fee', of £450 on a £100,000 loan. The new mortgage can come with a low interest rate but there may be arrangement fees booking fees, valuation fees, so it is essential that a thorough costing takes place to find out whether the remortgage makes sense when you take into account the charges set against the potential saving. You will almost certainly be better off using a broker, because first, the broker knows the market, and second, some of the best deals are only available through a broker. Remortgaging takes about four to six weeks, so if you are on a special deal that reverts to the standard variable rate, start shopping around a couple of months before the concessionary rate comes to an end. There are some fee-free remortgage deals. Although the interest rate charged may not be the very lowest deal in the market, the fact that there are little or no fees can be a big consideration on a remortgage. Alan Dunn organizes remortgages for clients only if it is worth their while. By taking into account their current mortgage situation and comparing the total costs of a remortgage (including fees that some lenders add on) the client will understand whether or not it is worthwhile. Remortgages can be taken out for other reasons than just finding a better financial deal. Anyone considering an extension to their property should bear in mind that remortgaging can often be cheaper than adding to an existing mortgage or taking out a secured loan or personal loan. Remortgages can be taken out to raise capital or consolidate loans that are on higher interest rates. You should think carefully about consolidating loans because a loan of 5 years duration could extend up to the length of the mortgage. These days however there are mortgages that allow overpayments so that if the borrower overpaid they could reduce the total money owed more quickly. Click on this link: what Alan’s clients say about remortgaging. |
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