The best Remortgage? Contact Zing!
Before we talk about how to get the best remortgage for your needs, let’s ask ourselves a couple of questions. Then we’ll know we’re talking the same language.
What is a Remortgage?
Yes, as a mortgage expert, I DO know the answer to this, you’ll be relieved to hear! But, as in any business sector, we use words and phrases without considering that our clients may not have more than a vague idea what we’re talking about. To remortgage means to take out a new mortgage on a house or flat you already own.
This could be to replace your existing mortgage or be used as a means to borrow money against your property.
Why would you want to Remortgage?
You might be considering a remortgage because, currently, the deal you have is costing you way above the odds and isn’t in your best interests. Perhaps your current mortgage deal is about to end—many of the special offers have only a two to five year life-span. Maybe you simply want a better rate? Maybe you want to switch from interest-only to repayment.
It could be that the value of your property has shot up so you’re eligible for much lower rates. Some people want to pay extra each month because they’ve come into some money or had a payrise, but their lenders won’t let them. Finally, you may want to borrow more money and your present lender isn’t keen. Whatever the case, you need to find the best remortgage to raise money cheaply on low rates. I’m here to tell you that finding the best remortgage package could save you hundreds each month.
Is it always wise to remortgage? Simple question. Simple answer. No. Not even with the best remortgage we can find you. We’ll advise you based on your specific circumstances, of course, but here are a few of the reasons why remortgaging isn’t always the most wonderful idea for you.
- If your mortgage is small anyway, the additional fees you’ll pay for a new mortgage won’t be worth it
- You may have to pay a huge charge for early repayment
- The current rate you have is already brilliant
- Your circumstances have changed through redundancy or illness, for example, and your income and/or credit-worthiness is compromised
- Your home has lost value
How to find the best remortgage Well, come to Zing (but we would say that, wouldn’t we?) Seriously, though, this whole remortgage scenario is really quite complex. There are so many variables to consider and twists and turns in the market to negotiate. Interest rates go up and down like a yo-yo.
Lenders are more picky since the credit crunch, with the Financial Conduct Authority breathing down their necks. You must balance additional fees against any saving you might make. The most important thing is to do your research and do your sums—but what if you don’t even know which sums you’re meant to be doing?