| Recent
years have seen tremendous competition in the mortgage-finance sector.
Low interest rates and a plentiful supply of mortgages have meant that
now has never been a better time to review your existing mortgage.
Remortgaging
simply means changing your mortgage deal, and usually your lender too,
so as to improve your mortgage agreement.
Spoilt
for choice
There is a wide selection of schemes to choose from. You could go for
a fixed or capped rate if you are anxious to control your budget, or
a discounted rate if you think you can take advantage of falling interest
rates. Cash-backs offer you a lump sum if you need some extra cash.
Or you could plump for a tracker mortgage where the rate you pay is
linked to the Bank of England base rate.
Alternatively,
you might wish to consider the increasingly popular flexible mortgage,
which offers you the facility to make regular or lump-sum overpayments,
take a payment holiday, cut your repayments, reduce your repayment term
and so on.
No
move, no hassle
You will probably have to pay an arrangement fee to a new lender, plus
solicitors' fees and a survey fee. You should also take into account
any redemption penalties that could still be outstanding and payable
to your existing lender. The good news is that you don't have to go
through the hassle of moving home in order to change your mortgage.
Do
your sums!
How do you choose which scheme to remortgage to? The answer is purely
a mathematical one - you have to do your sums to see whether you would
be better off elsewhere rather than with the deal you currently have.
You might even find that your decision to remortgage will prompt your
existing lender to offer you a better deal.
|
