Top 6 Tips for Remortgaging

Whilst Christmas is a time to relax with loved ones, many homeowners will be anxious about the prospect of their existing low-rate mortgage deal expiring. Many mortgage products expire in the new year. Given that interest rates are now generally far higher than they were just a few years ago, many homeowners will be concerned about how much their payments may increase when they remortgage. They may also be daunted by the remortgage application process if they have not experienced it previously.

Boon Brokers has grown significantly over the passed few years, having just reached a milestone of over 10,000 cases. Our brokers have extensive experience with Remortgaging. Here are their Top 6 Tips to ensure that you access the best deal available and have a smooth transaction:

1) Review Your Deal 6 Months Before Expiry

Mortgage Offers are typically valid for 6 months. You should take the opportunity to apply for a remortgage deal 6 months before your existing deal expires to maximise your chances of accessing the most suitable mortgage. If a better deal becomes available during that timeframe, you can still apply for it. But if mortgage deals worsen over that period, you will have at least secured a better deal previously that you can proceed with.

2) Book a Valuation with an Estate Agent

The loan-to-value (loan sum relative to the value of your property) will be a significant driver of the mortgage interest rates available to you. If your property has increased in value since your previous mortgage application, you may find that better deals are now available to you because of your improved LTV. To ensure that your application is accurate, you should book a valuation with an estate agent before the case is submitted to a lender.

3) Review Options with a Whole of Market Broker

Don’t panic! Many borrowers rush into securing a product transfer with their existing mortgage lender because it’s the easy option. It’s normally just a few clicks of a button. However, it may not be the best deal available to you. Let a whole of market broker, like Boon Brokers, investigate the market for you. It may save you a small fortune over the course of your mortgage term.

4) Review your Current Expenditure Levels

Given that mortgage interest rates have increased significantly in recent years, you should brace yourself for a rise in mortgage payments. To prepare for this increased cost, review your existing expenditure and cut down unnecessary costs where you can. This will make your monthly payments far more manageable.

5) Return Paperwork in a Timely Manner

The main cause of delayed completions for remortgage applications is due to clients not returning paperwork to brokers and solicitors in a timely manner. Before you approach your broker, gather the last 3 months of your payslips, corresponding bank statements and in-date ID & Address Verification documents. This should give the broker enough documentation to proceed with an application quickly. Once the Mortgage Offer is issued, be sure to correspond with your solicitor in a timely manner to ensure a quick completion.

6) Beware of Proceeding with Free Legals

At Boon Brokers, we have found that many Free Legals solicitors are struggling with their current workloads due to the influx of recent remortgage business. Free Legals solicitors are paid for by the lender, rather than the client. Where possible, we would advise that you select a suitable product with cashback that you can use with your own trusted solicitor. If you proceed with a Free Legals solicitor, you may find issues with communication and, in rare cases, the transaction may not complete in time. If this happens, your deal will switch to the lender’s Standard Variable Interest Rate, which is often very costly and offsets the saving made from opting for a Free Legals solicitor.

Boon Brokers is a whole of market, directly authorised, mortgage, insurance and equity release brokerage. Do you need to Remortgage in the near future? One of our expert brokers would be happy to assist. The best part is that our service is entirely fee-free. Lenders pay our commission, so you don’t have to.