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How Can I Save Money By Re-Mortgaging My Home?
Date: July 28, 2016
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The answer? Very easily. Allow us to explain…
When you take out a mortgage you agree a typically low rate of repayment for usually two, three or five years, thereafter agreeing to pay on the Standard Variable Rate for the remainder. Bear in mind that mortgages are usually on a 20 to 25 year term and f you never re-mortgage you’ll be paying a high SVR for most of these years!
The SVR tends to be the most expensive rate on the mortgage market is the rate people find themselves on after their fixed rate has ended, if they haven’t looked into re-mortgaging and finding a great fixed rate deal with another lender. While some lenders do tend to hold it just above the Bank of England’s base rate, most lenders will fix their own rate and will increase it as it sees fit.
If you are stuck on a SVR you may be paying much more than you would on a fixed rate, plus as this rate can be changed by your lender at any time it can deny you the security of knowing exactly how much you’ll be paying in the short and long term. The good news is that re-mortgaging can eliminate this problem all together.
Re-mortgaging is essentially shopping around for a new mortgage deal with other lenders, once your low introductory rate term with your current lender ends. What you should then aim to do is get another low fixed rate term, maybe with another lender, giving you a low, fixed rate mortgage for another period of two, three or five years – great for saving you money on repaying interest and giving you security for that period. When that period ends you can do the same and shop around again. Essentially you can pay off your entire mortgage over 20-25 years without ever having to worry about paying high SVRs to any lender.
The re-mortgaging process is not always quick and easy. It may be easy to find the best rates on the internet, but the best mortgage is not just about the lowest rate and rates advertised may not be available to you anyway.
A key difficulty is ensuring you meet the lenders’ criteria and complete a ‘fact find’ to establish this. You can do this yourself, but you will have to complete a fact find individually for every lender you enquire with, typically taking at least an hour for each lender. If you’re set on finding the very best deal this could be quite a lot, even if you only shopped around five or ten lenders you would spend a huge amount of time; but with so many lenders to shop around with you could still miss the deal that is right for you – potentially costing you thousands!
The alternative is using a broker to find you the best deal, this would save you a lot of time as you’d only have to do your fact find and then the mortgage broker will find you the best deal available from their many contacts. This eliminates the time it will take going through the lengthy process with each bank yourself.
With our free Fact Find service, our advisor will have a chat with you, gather the necessary information, explain your options and give you some ideas -some of which you may not be aware of.
Your advisor will also answer all of your questions thoroughly and explain our service, so you know exactly where you stand. This informal chat usually takes an hour depending on how many questions you have. Your advisor will then research the whole market and put together an easily understandable and bespoke plan which will enable you to achieve your objectives, and become mortgage and debt free quicker.
This is an entirely FREE service, without any obligation to sign up to any paid service whatsoever. To set up a free Fact Find appointment, simple give us a call on 01642-318419 or email us.
Bear in mind that there will be fees and costs involved in re-mortgaging but a good mortgage broker (whether ourselves or someone else) will make sure that the benefits out way these costs before you re-mortgage.



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