Remortgaging could save you money - and it may be easier than you think.
It's the process of moving your mortgage from one lender to another or choosing a different type of mortgage from your current lender. It could also cut your monthly repayments.
When should I consider remortgaging?
• If you're coming to the end of a mortgage deal and are about to move on to your lender's Standard Variable Rate.
• If your home has risen in value since you bought it, remortgaging could provide a cost-effective way of borrowing larger sums of money at lower mortgage rates of interest.
What to think about before remortgaging
Remortgaging can be a fairly straightforward process. The first step is to talk to a mortgage specialist about the wide range of mortgages available. Here are some example of the kinds of things you need to consider if you want to remortgage.
• If you're locked into a fixed-term deal with your present lender, you may be liable for an early repayment charge that could wipe out most of your potential savings. You could also be charged a fee for closing your mortgage with your old lender.
• When comparing your old mortgage with a proposed new one, make sure that you compare like with like, eg a repayment mortgage with another repayment one rather than an interest-only loan.
• If you only have a small mortgage, you might be better off sticking with your current deal, as any savings could be cancelled out by the costs.
How it works
Your mortgage lender will want to know several things when you remortgage, including the market value of your property and your current income. Most lenders will require you to have at least 10% equity in your home.
Once your remortgage application has been accepted, the lender will instruct a surveyor to visit your home to establish how much the property is worth. Do be aware that a surveyor will often value your home at a lower price than an estate agent. The whole remortgage process - from your first conversation with a mortgage specialist to starting your new mortgage contract - can take six to eight weeks. However, this should only be considered a guideline. Woolwich Switch & Save®If you're thinking about remortgaging and would like to find out what we can do for you, call our mortgage advisers on 0800 316 5500*, see our remortgaging offers or current deals for our existing customers. Customers switching from another lender can use the Woolwich Switch & Save remortgaging package with no valuation or legal costs. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE. | Link to previous articles: Barclays Woolwich Mortgage Selector: Which Mortgage is right for me? Barclays Woolwich Mortgage: Property Ladder-2 Barclays Woolwich Mortgage: Property Ladder Checklist for Buying a Home Barclays Woolwich Mortgage FAQ Barclays Woolwich Mortgage Glossary |
