Remortgaging is easier than ever before and can cut your yearly mortgage payments by up to £400 if you have a standard variable rate (SVR) mortgage, according to Which? But more than half of borrowers have failed to make the switch. Don’t let apathy prevent you from making savings. Follow our guide to a problem-free remortgage.
First of all find out how much your mortgage will cost you if rates were to rise
Remortgage action plan
Step 1 Ask your lender if it could offer you a better deal than the one you currently have.
Step 2 Check if your lender charges a redemption penalty.
Step 3 Decide what type of mortgage suits your needs.
Step 4 Then you need to find a new mortgage. Consider contacting a mortgage broker who can advise on a range of products across the mortgage market.
Step 5 Subtract any redemption penalty and other costs such as property valuation and solicitors fees from the savings you could make. If you can still make savings, then its probably worth while going ahead with a remortgage. If you dont want to do this yourself you could ask your mortgage broker.
Step 6 Once youve chosen a mortgage you will need to fill in an application form and the lender will make you an offer in principle.
Step 7 The lender will arrange to carry out a valuation on your home.
Step 8 You will need to contact a solicitor to carry out the conveyancing.
Step 9 Your solicitor will negotiate with your existing lender and obtain a redemption statement. You dont need to talk to your lender unless you are trying to get a better deal.
Step 10 Once the lender has received the valuation report it will make you a formal mortgage offer. This will be sent to the solicitor.
Step 11 If you are happy with the offer then it is just a matter of signing the documents.
Step 12 Once your mortgage has been successfully transferred you will get a completion notice which will confirm your new monthly payments.
