People may want to remortgage their
property for a variety of reasons, Better interest rate, Borrow more
money for home improvements or to consolidate existing credit
commitments. If you are unsure of what a remortgage actually is, click this link for an explanation http://www.learnmoney.co.uk/mortgages/remortgage.html
If you are looking at just simply
finding the best interest rate then approaching your existing lender
is probably the best place to start.
If say for example your fixed rate has
just ended and you want to fix the rate again for a period of time
the lender will take into consideration the value of your house and
the outstanding mortgage and generally offer you another rate as long
as your mortgage account has been conducted satisfactorily and your
income is still sufficient to service the mortgage.
You will then be offered a rate
dependent on the loan to value.
What loan to value means is what
percentage is the mortgage outstanding to the value of the property.
IE £150,000 mortgage and a £200,000
Property value would represent 75% loan to value.
The loan to value is quite important as
this will determine the rate and product a lender would offer.
Dependent what lender you are currently
with simply switching interest rate can either be time consuming or
Lenders like the Halifax plc allow
mortgage brokers to arrange the switch and this can be done very
simply without having to have a 2/3 hour appointment in the branch.
However you may want to borrow more
money than you currently have outstanding , so what happens then ?
This is the point when the services of
a professional mortgage broker will assist you greatly in the
A mortgage broker like myself will be able to look
at what your existing lender will offer you and what is also
available from the rest of the market.
All lenders have varying criteria for
additional borrowing depending on what that additional borrowing is
If it is more advantageous to switch
lenders the mortgage broker will look at what are the best interest
rates, what charges and costs are involved.
Lenders now offer incentives for people
to switch their mortgage to them and in many cases can offer better
rates than your existing lender.
So whatever your circumstances speaking
to a trusted mortgage broker who is independent to your existing
lender should be the first place to start because they will be able
to look at the full mortgage range and match the correct
product/lender to your personal circumstances.
Remember a mortgage is a long term
commitment and by taking the correct advice when there are changes to
the mortgage could save you £1000’s of pounds in unnecessary