What is a Remortgage?
A Remortgage is when a mortgage deal comes to an end and you have to either renew your deal or switch onto another one. If you are approaching the end of your mortgage term and you need a new deal to switch onto, perhaps it’s time to get Remortgage Advice in Cardiff.
If you leave a Remortgage too late, you could find yourself dipping straight onto your lenders’ standard variable rate (SVR). A lenders’ variable rate will always be a higher rate than your current fixed-rated, so make sure that you know when your deal is coming to it’s end and it’s time to remortgage.
What should I do when it’s time to Remortgage?
When it’s time to remortgage, you should consider all of your available options:
- You could stick with your lenders’ SVR if you don’t want the hassle and are happy with the rate.
- Maybe you want to renew your current deal and continue at your usual rate
- You could shop around for different deals to see whether you can access a better rate or not (also known as a product transfer/switch).
Lenders’ Standard Variable Rate
More often than not, your lenders’ standard variable rate will have a greater interest rate than most of their fixed-rate mortgage deals. If you want to save the hassle of searching for another deal or are more than happy to match their payments, this could be an easy option for you. It depends on your lenders’ standard variable rate.
As a Mortgage Broker in Cardiff, we must inform you that in the majority of cases, applicants who are on their lenders’ SVR are able to access much better rates.
The only real positive to being on your lenders’ standard variable rate is that you are not tied into any particular mortgage deal, therefore you can shop around and look elsewhere for other mortgage options whenever you want to. You can’t do this whilst linked with a fixed-rate product. You are essentially overpaying for freedom.
Renew your current deal
If you were happy with your mortgage payments, you may be able to renew your current deal. Your lender will know that you are coming to the end of your deal, however, they may not tell you. It’s your job to know when it’s coming to an end and you must get in touch with them if you want to discuss teh possibility of renewing your deal.
When a deal suits your circumstances, we know that there is rarely a reason to swap products. The only time it really happens is when someone can get the same product from another lender for slightly cheaper.
Shop elsewhere
In our opinion, this is your best option if you are looking at Remortgaging in Cardiff. Most of the time, there’s a better deal out there that’s available for you, it’s just the case of finding it. Remember that you are under no obligation to stay with your current lender, so when we say to “shop around”, you can look anywhere.
Lenders will never reward you for your loyalty, they are more likely to offer better rates to First Time Buyers in Essex. No matter how long your term was, they will never offer you discounted rates or products.
When you are looking for external deals, you have to be careful where you look. For example, if you choose to switch everything over online, you need to make sure that you pick a deal that is right for you. If you end up with the wrong deal, you will have to deal with consequences as you chose not to take Mortgage Advice in Cardiff and did everything yourself. If this results in you paying more than your previous rate, you can’t do anything about it, you will still have to pay.
There are ways to get out of a wrong deal, however, they include high fees and a lot of trouble. If you take Mortgage Advice in Cardiff you will avoid all risks of getting it wrong, as a Mortgage Broker like ourselves aim to get it right the first time!
Remortgage completion
Once you have chosen your Remortgage route and have a new/the same deal in place, you are free to continue as you were prior to remortgaging. You will continue paying your mortgage payments as usual.
Hopefully, you managed to get a competitive rate out of your remortgage and are happy with the product that you now have. Until your term is over, you don’t have to worry about remortgaging for a while now.
On the other hand, if your personal or financial circumstances change in Cardiff, you should know that you can remortgage again if you need too. If your situation has changed, your lender will take it into consideration and may be able to work something out for you.
If your situation is complicated, approaching a Specialist Mortgage Advisor in Cardiff could your best option. You can also Remortgage for home improvements and to raise capital, so don’t hesitate to get in touch if you need help with this.
Date Last Edited: December 6, 2023
