Remortgages made easy

6 questions answered to help you remortgage to a better deal

At L&C Mortgages, we don’t bewilder you with details of hundreds of different mortgages and masses of information online about the mortgage industry – even though we can access every available mortgage deal on the market.

Rather, we stick to basics: we listen carefully to what YOU want and then we go away and do all the hard work to find you the best mortgage. It’s this simple customer-focused attitude that wins us awards and is why we are often referred to as the ‘consumer’s champion’.

This page will give you the basic information that you need about the remortgaging process. True to L&C form, it’s easy to understand. As you go, you can follow links into other pages to obtain further information.

1 What is remortgaging ?
Remortgaging simply means saving money by switching mortgage to a better deal. UK borrowers are beginning to realise that you don’t have to remain loyal to your existing mortgage lender, but that you are free to shop around for the best mortgage deals - just as you are free to shop around for car or travel insurance. It is for this reason that many people turn to mortgage brokers to find them the best mortgage deals – rather like employing a personal shopper.

Contrary to common opinion, remortgaging doesn’t consist of masses of paperwork and you don’t necessarily have to pay fees up front to switch mortgage. It can be a surprisingly painless, quick process. Why not check out our real life diary of a remortgager to find out how easy switching mortgage can be?

2 How much will I save by remortgaging ?
If you are paying your mortgage lender’s standard variable rate (SVR), then there’s a good chance that you will be able to save money by remortgaging.

Let’s say you are attracted to a mortgage because of its low interest rate. Then after it runs out in, say, 2 years time you don’t bother to shop around for another mortgage deal. So your mortgage lender places you onto their SVR, which tends to be 2% higher than the best mortgage deals available.

So what? That 2% extra on a £100,000 interest-only mortgage means an extra £2,000 a year!

Even if you’re not currently paying your mortgage lender’s SVR, you might still be able to save money on your mortgage. The industry moves quickly and there are new mortgage deals arriving on the market all the time. It always pays to take a few minutes to phone a no-fee broker to check whether you could save money. For more information about the savings to be made by remortgaging, click here.

3 How much will it cost me to remortgage?
The answer to this should be ‘nothing’. There are some fees involved with remortgaging, and really you should only remortgage if you are going to save money overall. That is to say, you should be able to compensate for any fees that you pay up front. Some mortgage deals offers assistance with fees.

Check out our article on remortgaging fees for further information.

4 How do I know which mortgage to go for?
There are thousands of mortgage deals on the market. It can be bewildering, so keep things simple. Narrow things down by finding out about the types of mortgages on offer.

Click on the following links to go to a simple description of each mortgage:

Tracker mortgage
Discount mortgages
Fixed rate mortgages
Capped mortgages
Flexible mortgages
Cashback mortgages
Offset mortgages

Once you have an idea of which type of mortgage you might like to go for, things become a little easier. Of course, if you’re really confused then a mortgage adviser can help you decide.

5 Anything else I need to be aware of?
There are a few other points to consider, all of which are covered on our simple ‘Mortgages made easy’ page and on ‘Other mortgage issues to consider’. It’s well worth taking a minute to read both these pages. Otherwise, skip right to your area of choice:

How am I going to repay the mortgage?
Repayment mortgages
Interest-only mortgages
Daily or annual interest calculation?
Higher Lending Charge
Extended early repayment charges
Endowment shortfall mortgage
Using your mortgage to consolidate debt
Using your mortgage to raise capital
How do you find a good mortgage broker?

6. Great. But where do I go from here?
Firstly, find out if you can save money by remortgaging. Ask your current mortgage lender if they are prepared to offer you a more competitive deal.

Secondly, phone a mortgage broker. L&C is a good place to start. We advise from the whole of the market and our expert mortgage advice is free (see free mortgage advice: our no broker fee policy).

Thirdly, your mortgage adviser should do all the calculations to ensure that the remortgage makes financial sense for you.

And finally – don’t let it stop there. Put a note in your diary reminding you 3 months before your new mortgage is due to end. People do this all the time to remember to cancel subscriptions etc to avoid paying a couple of pounds, but then don’t bother to do the same for their mortgage – probably their biggest financial commitment.

Once your diary reminder comes around, you can then dig the paperwork out and phone your mortgage broker again. That way, you can even set a completion date on the mortgage to suit you. You will then be able to keep saving money on your mortgage until it is no more.

Enjoy saving money on your mortgage!

Remortgages made easy

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