When your current mortgage deal is about to come to an end, in most cases your existing lender will write to you nice and early ahead of the end date to let you know. You will find that usually, they will have nice new offers for you to choose from when staying with them.
It is really easy, just choose the one you want, let them know and it can be done in minutes.
However, what if that isn’t the best deal for you? What if you want to borrow some more? what if you want to change the term? And what if you want to pay off a lump sum?
None of those things are actually completely straightforward if you stick with the same lender.
There are exceptions to this rule, and it does depend on your situation but in our experience, you will not get the best deal by staying put, as with most things in life you get a better rate as a “new customer”. Loyalty is certainly not rewarded from lenders for being a faithful mortgage customer sadly.
In fact, a saving of just 0.5% on a mortgage of £250,000 would be around £62 per month difference. That is about £3720 over a 5 year fixed term!* A substantial amount that you could and would probably want to put to better use!
If you are considering borrowing more on your mortgage, to perhaps make some home improvements or an extension, you will have to go through a whole application with your current lender and some will even charge a higher rate on any additional borrowing. This is why it is usually just as easy to go in search of a new, better deal for you.
Making changes to your existing mortgage can be tricky. But when you go to a new lender you can start again, choosing the term and amount that you need and that fits within your budget and retirement age.
Choosing your next mortgage can seem a daunting prospect. who has the best deal for you? who will lend you enough for what you need? Which lenders’ criteria will suit you?
For an experienced mortgage broker, it is usually quick and easy to work out what is best for you and which lenders will do all of the things you need them to and most importantly, which product will be the most cost effective for you.
Remortgaging Banbury made simple…
So you may be thinking, doesn’t it cost a lot to change lenders?
Absolutely not! In fact most of the time for a simple swap it doesn’t cost anything at all. Most lenders will provide a free solicitor to handle the change over and they will usually cover the cost of the valuation too.
This is the point when we will find out about your situation, your income, outgoings and any other considerations that may need to be taken into account, like your credit history.
Banbury Mortgage Advisors
We also have invested in technology that helps us to work out the value of your home together. This is very important as it is one of the factors that dictates how much you can borrow. If you are local to North Oxfordshire and would appreciate a local, in person valuation of your home then do get in touch with my estate agent; Maxwells on 01295 268432 or email my team at email@example.com
We will then spend some time discussing what you need from your new mortgage and what kind of interest rate and lender may be best for your individual situation.
Then we will let you know what your options are, what rates may be available (subject to credit score of course) and how much you could potentially borrow based on your income and house value.
With all of that new information, you will be able to decide if you would like to go ahead with a new mortgage. We will need various documents from you, all of which are explained in detail.
We always offer a completely free and no-obligation 30 minute consultations with one of our re-mortgage experts so that you are able to make an informed decision about remortgaging.
For more information around Remortgaging Banbury please speak to one of the expert team today.