Remortgaging Tips

• Shop around-we always recommend that at least 3 quotes be obtained.
• Don’t be tempted to INCREASE the length of your mortgage term. It may be cheaper in the short term, but will cost you much more in the long run.
• Check, check and check again, all those fees, penalties and costs.
• Always try and be aware of what is happening in the mortgage market with interest rates. Review your individual circumstances every 12 months as a remortgage could save you money.

1. What types of remortgage deals are available and how do they work?

Many lenders offer a variety of remortgage products - capped rates, fixed rates, discounts, cash-backs, flexible deals and Base Rate trackers, for example. Always ensure that you are sure of all the pros and cons before proceeding.

2. What interest rate will I be charged on the new deal?

This depends on what rate that you opt for. Again always ensure that you are fully aware of the rate that you are being charged and for how long.

3. How much better will my new mortgage rate be?

Again, this depends on which rate you choose. Most people remortgage because the lower rate means that the repayments are cheaper, or are over a shorter term, thus reducing the overall outstanding balance owing. Again ensure you know what you are paying and for how long. Your payments may not change much, but if the term of your mortgage has decreased, then this will save you money in the long term.

4. What is an annual percentage rate (APR?)

APR meaning ‘annual percentage rate’ has to appear in all adverts as well as the main mortgage rate. APR's are designed to provide customers with a true idea of the cost of loans, and help to compare different deals. In practice, the APR is no substitute for individually-prepared quotes listing all upfront and ongoing costs, which is always something which you should insist upon.

5. What are the early redemption charges (ERCs)?

Most mortgage lenders apply early redemption charges (ERCs) to certain deals, such as fixed rates and discounts, to discourage customers from switching before the end of the loan period. An ERC is usually calculated as a percentage of the outstanding loan, and can run to thousands of pounds. Again check with your lender about the redemption charges and fees.

6. Will I have to pay remortgage arrangement fees?

It again depends on which deal that you choose. Many lenders, in an attempt to attract new customers often offer fee free arrangements. However, please check with your lender to ensure that you are aware of all the fees.

7. How long should the remortgage process take?

Unfortunately there are no set timescales for completion, and it will really depend on the lenders involved. It can take as little as one week, or be as long as eight weeks, as everyones individual circumstances are different.

8. Can I remortgage more than once?

Yes. You can remortgage as often as you like, but you must remember that with each move there are likely to be additional costs, fees, and charges involved.

Back to Remortgages

Would you like to know more?

The Basics  |  Flexible Remortgages  |  Cash Back Remortgages  |  Tracker Remortgages
Variable Rate Remortgages  |  Capped Rate Remortgages  |  Fixed Rate Remortgages  |  Discount Remortgages
Cheap Remortgages  |  Cost-Fee Remortgages  |  Remortgaging Tips

Useful Financial Links

Please find below some links that you may find useful from JST Financial. These links are to external sites and will open in a new window.

	Consumer Direct from The Office of Fair Trading carries extensive Loans information, covering everything from Unsecured Loans to Right to Buy Mortgages.
	MoneyMadeClear (The Financial Services Authority) offers a great, free to use Loans Calculator.
	Trading Standards offer advice on taking out a loan and what your rights are.

If you know of any other links that you believe may be of use to our visitors, please contact us.