If this is the year you make the decision to start applying for a new mortgage, we are here to help you start on the right foot.

New year, new mortgage

Almost all mortgages come with a headline offer for the first 2-5 years. This period can sometimes be longer or shorter depending on where you go, but in most cases, this is a common timeframe. At the end of this offer, your mortgage rate will bounce back to the lender’s standard variable rate. In most cases, this will be higher than what you were paying.

These introductory offers are also available if you wish to remortgage your home. This can be a great way to save yourself from paying hundreds more in interest each month for an additional two or five years.

However, it is important to make yourself aware of the drawbacks and potentially large fees of applying for a new mortgage. Read on to find out more.

Why should I remortgage?

Before you do anything, it helps to consider the reasons to remortgage. If your current deal is about to come to an end, or already has, here are some reasons why remortgaging may be ideal:

• You can continue to save money
• You can release some of the equity in your home for making changes
• You can pay off your mortgage earlier
• Your property has increased in value
• You want to switch from an interest-only to a repayment mortgage
• Economic uncertainty

Costs

The first thing you should do is calculate how much it will cost to switch. To do this, simply compare your current costs to the costs of a new deal. Be sure to compare typical remortgage rates and include the cost of any fees for leaving your current mortgage deal. Finally, make sure you consider the arrangement fees for setting up a new mortgage.

When is the best time to remortgage?

Generally, it is advisable that you begin looking for a new mortgage around three months before the end of your current deal. When a lender offers you a mortgage, you often have 3-6 months to accept it before you must reapply. This is why it is important that you search for a new mortgage before your current deal comes to an end. If you don’t, you will automatically move over to your current lender’s SVR, which is usually far more expensive.

According to Moneyfacts, the financial data website, the average two-year UK fixed mortgage rate is approximately 2.52 per cent, compared to the average SVR of 4.9 per cent.

Finding the best remortgage deal for you

Though certain deals may benefit some, it is important that you find a remortgage deal that matches your circumstances when applying for a new mortgage. You may find that a different type of mortgage may suit you better, such as a fixed-rate mortgage deal. This type of deal benefits those who need to be sure of their monthly repayments.

It also helps to keep an eye on certain mortgage features, such as repayment holidays or the option to pay back more.

Remortgage your home with soliciting from Betesh Middleton Law

At Betesh Middleton Law, we are proud to offer conveyancing services throughout Greater Manchester to ensure an easy remortgage process. Our experienced team is here to guide you through every step of the way, keeping the process efficient and easy to understand. If you would like to learn more about our services, get in touch to speak to a member of our team.