Remortgages

Remortgaging

Remortgaging your home is one of the best ways to save several hundred pounds a year. Hurrah, you're a homeowner! Well, you and your lender are. To be able to call that home your own, you'll have to pay off that pesky mortgage. And although for most of us this is a 25-year deal, careful management of your mortgage could mean you get rid of that millstone years earlier, whilst saving yourself a packet in interest. So how can you do this? By remortgaging to a better deal, every time your deal expires.

Before you start you need to establish exactly where you stand at the moment. You've probably got a fair idea of the amount you're paying each month but most people don't know what the interest rate they are paying or how much is outstanding on their mortgage. You can find this information by calling your mortgage company or checking your latest annual statement. If your mortgage is relatively new you may be tied into a special rate deal. Often there are penalties for moving mortgages while you're in this honeymoon period. Some lenders even charge redemption penalties after the special rate has ended. So you need also need to find out these details. Finally, many lenders also charge a fee for the standard closure of a mortgage (on top of any redemption penalties). In fact, many have hiked these fees recently in an attempt to dissuade people from moving their business elsewhere. You'll also have to include these costs in your sums.

Why Remortgage?

The simple reason remortgaging is because it could save you an absolute fortune. Cutting 1% off a £100,000 mortgage will cut costs by around £80 a month. Remortgaging to a better rate could be the biggest single money-saving activity possible, the financial equivalent of liposuction.  The reason for remortgaging is just too large of a subject for an online discussian. It's something you need to sit down, either discuss over the telephone or have a face to face meeting and take some time over to think about why you are remortgaging. After all, a mortgage is likely to be your biggest single expense and therefore getting the remortgage right offers the biggest single savings

Remortgage calculator