4 Facts You Need to Know About Remortgaging
For some homeowners, sorting out the details of a remortgage can be as confusing as getting a new home mortgage. While there is no need to look for a home or save for a down payment, being a smart remortgaging borrower still requires a little due diligence.
1. Exploring Remortgage Terms and Programs
It is important to evaluate the loan details to ensure the program will meet your needs. If your goal is simply to get a lower payment, the remortgage loan that is best for you may be quite different than one designed for a borrower with a goal of releasing the equity or consolidating debt.
Remortgage loans have many options to choose from, including fixed, standard variable rate, tracker and more. Start your exploration by assessing where you are now with regards to your interest rate, payment and outstanding balance. Next, get a few quotes from reputable lenders. Afterwards, it will be much easier to select a remortgage loan that matches your income, credit record and property profile perfectly.
Obligation Free Remortgage Quotations
Get a Quote »2. Knowing What to Expect
Understanding the remortgage process will alleviate some of the worry and stress that tend to go hand-in-hand with home financing. A competent remortgage advisor will take the time to educate you on the loan flow and provide tips on how you can help to expedite the remortgage process. At this stage of the game, you should also be made aware of any remortgage fees and early redemption penalties. High expenses for either of these could easily wipe out your proposed remortgage savings.
3. Understanding the Approval Criteria for You and Your Home
As part of your research, step outside the box for a moment to ask detailed questions about remortgage approval guidelines. You have a right to know. If the loan you have in mind has guidelines that are too stringent to meet, then select one that will allow you to meet your goals without suffering a nervous breakdown.
If there are five essential steps that have to be met, but you only meet four of them, don’t expect the lender to look the other way on the last one. The same holds true for your property. The square footage, land and features all play a part in the approval process. A high rise condo may come with different guidelines and pricing than a single family home – even for borrowers with nearly identical credit records.
4. Remembering What to Avoid in the Remortgage Process
All too often, mortgage professionals overlook the necessity to discuss the impact of a significant change in your profile before loan completion. It is important to keep your income, assets and credit at current levels or better until your loan is finalised. Otherwise, your anticipated loan approval could turn into a counter-offer with much less attractive terms.
Once you are aware of the elements that can cause your remortgage progress to go well (or not-so-well), you can be confident in your ability to find the remortgage deal that fits your needs.