There are plenty of remortgage products out in the market and choosing the best one that fits your needs and budget is crucial to remortgaging success. Before just going with the first deal you find, you have to pinpoint what your particular needs are.
To help you out, below are five key considerations to help you figure out the ideal remortgage products for you.
How Much could You Save when Remortgaging?
The answer to this is a bit tricky since you need to consider several factors. First, check out current market trends to try and figure out what kind of interest rate you could get. You should likewise decide if you’re taking out extra home equity to be used for debt consolidation or something else. Lastly, check out the costs of remortgaging to determine how much you stand to save, advises a conveyancing expert for remortgage.
The Value of Your Home
Your home’s current value would make a massive difference in the kind of remortgage deal you could land since it’s directly tied to how much your interest would be and the amount you could borrow.
The Value of Your Current Mortgage
Before remortgaging, call your lender to ask for a redemption quote so you could compare your current mortgage’s balance against the value of your home. This would give you an estimate of how much home equity you currently have. Generally speaking, having sufficient home equity would increase your chances of getting a great remortgage deal.
If you have issues with your credit, it’s best that you wait to remortgage. In the meantime, try to address your credit issues so that you could land a better remortgage deal once you’re more financially stable.
How Long are You Going to Live in Your Home?
If you are currently saving up money to purchase a bigger home and moving, compare the costs against remortgaging. Because remortgaging comes with unavoidable costs, it would take some time before cashing in on your move’s financial benefits. If you’re not planning on sticking around, remortgaging might cost you more.
Knowledge is key to remortgaging success. So, educate yourself before you decide to remortgage. Speak with your current lender, other lenders, and family or friends who have gone through the remortgage process so that when you do end up remortgaging, you’ll be sure to get the best deal you could land.