Sunday, June 23, 2024
HomeLoansWhen is the Best Time to Apply for a Remortgage?

When is the Best Time to Apply for a Remortgage?

Once you get yourself a mortgage, if you have a fixed term then you stay with it for its entire term. At the end of the term, you can switch to a new deal in a process called remortgaging. Borrowers remortgage their properties to save money and manage their finances better.

However, remortgaging requires meticulous planning and precision. You cannot randomly decide to switch to a new deal just because it seems more lucrative. It is important to analyse your existing mortgage, explore all available options, and assess your financial circumstances before making a final decision. Some of the most common questions borrowers ask is about the best time to apply for a remortgage. Can I remortgage early or remortgage before the end of the term?

Homebuyers often get tempted by low-interest rates offered by mortgage lenders. While it is better to lock in a new deal and reduce the interest you pay on your mortgage, make sure you do it at the right time. Consult your local mortgage broker for example if you are in Slough then look for a mortgage broker Slough and see what you can do to get the best out of a remortgage deal.

What is the Best Time to Apply for a Remortgage?

Ideally, a borrower remortgages their property when their current deal’s fixed term is nearing its end. Instead of switching to a variable interest rate, it is advisable to take on a different mortgage deal and get to its fixed term. So, it is safe to say that the best time to apply for a remortgage is before the fixed term of your current mortgage deal ends.

“So, how early should I be applying for a remortgage?” you may ask.

While there is no objective answer to this, it is better to start preparing for a remortgage at least six months before your current fixed term ends. This gives you enough time to explore available options, consult your mortgage advisor, and receive comprehensive advice on the matter. Ensure that you will not be asked to pay early repayment charges. If your expenses are more than benefits, it is not the right time to remortgage.

If all other factors seem conducive, you can also remortgage your property if you need some money to conduct home improvements or meet your financial obligations. Switching to a better mortgage will give you financial benefits, provided your expenses do not nullify them.

Is It Compulsory to Honour a Remortgage Deal Once You Start?

Homebuyers often believe that it is mandatory to complete a remortgage deal once they start. However, that is not the case. If you start with the remortgaging process early and are not completely certain about your decision, you can cancel the application at any time. Nevertheless, you may face some complications if you are remortgaging with the same lender. Make sure you seek advice from your mortgage broker or mortgage advisor before moving forward.

Playing Safe by Securing a Remortgage Deal

If you are planning to remortgage your property, you must be worried about the interest rates going up by the time you honour the deal. To play safe, you can always secure a deal six months before your existing mortgage deal ends.

If the interest rates remain the same over the next six months, you can go ahead with the remortgaging process as planned. If the interest rates go down, you can always lock in a new deal. Such an arrangement protects you from undesirable fluctuations in the interest rates offered by mortgage lenders.

Securing a mortgage deal works out best if you remortgage with the same lender. As you are already associated with the concerned lender, your mortgage advisor can explore the options for you and lock in a remortgage deal.

How Should You Remortgage Your Property?

The best way to start the remortgage process is to approach your mortgage broker. Give them your requirements and let them assess your financial position. Like remortgage with bad credit if you have adverse credit. Or remortgage for home improvement. Give all relevant information to your broker to obtain comprehensive help.

Your mortgage broker will suggest to you whether you should stick with the same lender or look for a new one. If you are remortgaging with the same lender, the process becomes quicker and more lenient. Working with a new lender will require you to go through a process similar to getting your first mortgage.

From property valuation and affordability checks to credit assessment and extensive documentation, you will be following the complete process as per the new lender’s criteria. Your mortgage advisor can explain this to help you understand this better.

How Does a Mortgage Broker Help in Remortgaging?

A mortgage broker is often the pillar a borrower rests on while remortgaging their property. These professionals know the market well and guide you every step of the way until you switch to a better deal. Especially if you are new on the property ladder, you are not likely to know all the deals at your disposal. Having worked in the market for years, experienced mortgage brokers get them the deals that best suit their circumstances.

Moreover, the brokers are well-versed in the entire remortgaging process. They will help you make the right decisions in calculating your expenses, anticipating the benefits, choosing the right lender, and locking in the right deal. Their impeccable knowledge of the country’s financial environment is also reflected in their services.

If your financial circumstances have taken a toll after getting your first mortgage, a mortgage broker can help you remortgage with bad credit, too. Brokers are often connected with specialised lenders who help borrowers with bad credit. Depending on your affordability, credit score, and overall financial condition, your mortgage broker will ensure that you get the best remortgage deal.

If you want to reduce the expenses involved in remortgaging, work with an online mortgage broker who often offers fee-free mortgage advice. These brokers offer fee-free services without hampering the quality of their offerings. Take remortgaging seriously and do your homework before making up your mind!

More from MoneyVisual

Recent Posts

Most Popular

Educational Topics