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Remortgaging dos and don'ts
If your mortgage is approaching the end of its special deal period, it’s worth having a look round to see what other offers may be out there in the market.
Remortgaging is a good way to avoid high fixed or variable rates and take advantage of more attractive tracker, fixed rate or discount mortgage deals currently on offer.
Research, Research, Research
As a first step, approach your current lender and ask for a written redemption statement. This will show you exactly how much is outstanding on your loan and will indicate any fees or penalties to be charged for redeeming your mortgage. Remember to take into account any other fees you may also incur, such as:
Arrangement fees for your new mortgage – these can vary from £150 to £1,500A mortgage valuation fee (£150-£300)A higher lending charge (HLC) – applies when the amount you are borrowing is 75% of the property's value.Solicitor's feesLand registry and local search fees
It pays to examine your new mortgage offer in detail. Ask for a written statement of what your new repayments will be, including discounts, arrangement fees, HLCs etc. Then work out how much you will be saving by comparing your new repayment amount to the old one. Don't forget to consider how the standard variable rate the new loan will revert to will affect your future payments.
Your flexible friend
If it's a while since you took out a mortgage, you might find that one of the new options now open to you is a flexible mortgage. A flexible mortgage is design to fit in with your lifestyle by, for example, giving you payment holidays, or underpayments, as well as the chance to increase your payments when times are good, or make ad hoc additional payments.
Whatever you do regarding remortgaging, remember that for a concise and impartial analysis and advice about of your mortgage situation, it's always a good idea to call the Census Financial mortgage team on 028 9066 8700.