Remortgaging is something home owners do when they want to change mortgage providers. It is something that is not done that often but can make a significant difference when it is done. If you move to a company with lower interest rates, charges and fees you could save a significant amount of money, particularly over the long term. But how do you find the right provider?
Identify your needs
You need to start by thinking about what you want from your lender. It is most likely that you will want to save money but there may also be more that you want. Perhaps the flexibility to repay early or to skip repayments or you may be looking for reduced fees. You may want to reduce the term of your mortgage, reduce the repayment amounts or borrow more money. You need to identify this before you start.
You then need to get an idea of what deals are available to you. You can use comparison websites to get a general idea of what sort of options are available. These will not give you all the options or details that you need, but they can identify the lenders that may be able to help you to get what you want. It is wise to use several comparison sites as they are not all the same, each having different lenders that they compare. None of them compare all lenders.
Once you have identified some lenders that you are interested in then it is worth telephoning them or visiting their website or branch to find out more. You will want to know whether the mortgage product is exactly what you want. It may be cheap but is it flexible, it may a trusted lender but will the interest rate be competitive? There are lots of questions you need to think about.
It can be wise to use an independent financial advisor for you. They will be able to compare more lenders than a comparison website and they will be able to look specifically for what you want. They will take a lot of the effort out of searching and may be able to recommend products that you would not otherwise have found.
Consider the Future
Although none of us have a crystal ball, we need to be aware of what might happen in the future. If you are moving to a lower term or dearer repayments so that you can pay your mortgage off cheaper and more quickly, consider whether this will be sustainable in the future. Think about whether you need something flexible in case you lose your job or cannot make repayments for another reason.