How Accurate Are Online Remortgage Quotes?

If you’re thinking about a remortgage, you’ll naturally want to get the best indication you can about how it’ll affect your finances, before deciding whether to go ahead and apply for it or not.

There are a wealth of online tools, such as remortgage comparison services and calculators, that can help you to gauge the relative value of any prospective remortgage deals you’re considering. These tools really are useful when it comes to weighing up the different factors affecting your financial situation, but they can at best only give you an indication of what the outcome of applying for a remortgage might be.

The only way to know what a remortgage deal will be for sure is to go ahead and apply for it. However, you should do as much research and shopping around as you possibly can before getting to this stage, so that you get a deal that suits you best.

Property Value

When you actually begin the process of a remortgage, often what will happen is that the new lender (i.e. the one that the remortgage is going to be with) will arrange for a valuation to be carried out on your home. The result of this valuation will affect the mortgage deal that you’re offered, as this will depend on the LTV, i.e. how much of the property’s value you’re looking to borrow, as well as the rates that the lender is willing to offer you on the basis of this.

Unless you actually have a valuation carried out on your property, which can be costly, you can’t really know for sure what the value of your property will be determined at. In order to best compare potential remortgage deals however, you need to have an idea of what the property’s value is.

One way to do this is again to use online tools that can help you to work out an estimate of the likely value of your property. To do this, you basically look at what similar properties in your area have sold for recently, and work it out from there, bearing in mind any differences between the properties in terms of size, location and state of repair.

Lending

Once you’ve got a reasonable idea what the property is going to be valued at, you can feed this into the comparison and calculation tools available online for remortgages. Work out what borrowing you’re actually looking for, as in many cases people look to remortgage on order to acquire funds, e.g. for home improvements or debt consolidation. You can then also feed this into the online quotation tools.

Compare

When comparing the available deals online, focus on what your priorities are. For example, if you’re looking to minimise or reduce your monthly mortgage payments or indeed the length of your mortgage, check this out when looking at the different deals.

Remember to bear in mind any possible exit fees for your current mortgage and any set up costs for the new one when working out what the financial outcome of remortgaging will be. The better the information you provide, the more accurate a quote will likely be.