The level of remortgaging has risen six fold over the last fifteen years, according to figures from the Council of Mortgage Lenders. While many people are making the most of better rates, it is estimated that more than half of all borrowers may be continuing to pay over the odds for their mortgage each month. Switching to a cheaper deal is one of the easiest ways that homeowners can save money, better in many cases than a wage rise.
More and more people are realising that they can use their strong position as a home owner to release the money tied up in their homes to use for any purpose. Releasing the equity in the property means that high interest rate credit cards and loans can be repaid at low interest rates for one easily affordable monthly payment – freeing £100s per month simply by rearranging existing credit commitments. In addition money can be released for any purpose – home improvements – an extension that will increase the value of the property further, special occasions, weddings, dream holidays or that special car.
As independent mortgage brokers, Westexe Mortgage Solutions can ensure that we provide you with the right advice and the right product.
There are many things that need to be considered when looking for a remortgage.
The first step is to check the terms and conditions of your existing mortgage. These will tell if you are tied-in to your mortgage deal or if there are any redemption penalties – sometimes phrased as early repayment charges. If you are locked-in, you must decide if it is worth switching to a different rate or stay put until the penalties have expired. You may have been with your existing lender for a long time and feel a sense of loyalty towards the company. However, most lenders do not reward this loyalty with a reduction in rates. You should therefore expect to shop around and look towards a different lender to get a better deal.
The advantage of using Westexe Mortgages is that we will look at what different lenders are offering and, being an independent mortgage broker, we will often have access to special deals, which are not available elsewhere on the High Street.
You will face a choice of broadly five types of deals: fixed, tracker, capped, discounted and flexible.
Fixed-rate schemes are ideal for people who want certainty and must be able to regulate how much they will be spending each month. The rate is usually fixed for between two and five years.
Tracker mortgages directly track the Bank of England Base Rate, these are variable and will go up or down with the bank base rate.
Discounted loans offer a reduction off the standard variable rate for a set period. If rates fall further, the rate that you will pay will also go down. However, when rates rise, so will your mortgage payments.
Capped-rate loans will set a limit on the rate you will pay. If rates rise, your payments will not go above that level. However, if rates fall below the cap so will your repayments.
Flexible mortgages allow you to overpay and underpay when you choose and without penalty. This is ideal for people who have fluctuating incomes or who want to clear their mortgage early.
An increasing number of fixed, capped and discounted deals have more flexible features as well. With so many areas to consider, why not let Westexe Mortgage Solutions take care of finding the very best remortgage deal for you.