When you’re remortgaging, it can feel like there are a million things to think about and a thousand decisions to make. It’s easy to get overwhelmed. But don’t worry, in this article, we’re going to give you ten tips to make the process of remortgaging for the first time a lot easier. But first, let’s quickly go over what remortgaging is.
What Is Remortgaging?
Remortgaging is the process of taking out a new mortgage to replace your existing one. It can be a great way to save money on your monthly payments, get a better interest rate, or release equity from your home.
You might be considering remortgaging if:
- Your fixed-term mortgage deal is coming to an end, and you want to find a new deal
- You have a tracker mortgage, and rates have gone up, so you want to switch to a fixed rate
- You want to release equity from your home
- You’re struggling to keep up with your monthly payments and want to find a more affordable mortgage
Now that you know what remortgaging is let’s move on to the tips!
Tips For Remortgaging For The First Time
1. Don’t Rush It
When you’re remortgaging, it can be tempting to rush into a decision. But it’s important to take your time and make sure you’re making the right choice for yourself and your family. There are a lot of factors to consider when remortgaging, so don’t make any decisions until you’ve weighed up all the options and done your research.
2. Get Your Finances In Order
Before you start looking for a new mortgage, it’s important to get your finances in order. This means knowing how much you can afford to borrow and making sure your credit score is as high as it can be. Lenders will look at both of these factors when considering your application, so it’s important to make sure you’re doing everything you can to improve your chances of being approved.
3. Compare Mortgages
When you’re looking for a new mortgage, it’s important to compare different deals. This can be time-consuming, but it’s worth it in the end. There are a lot of different mortgages out there, so make sure you compare rates, fees, and features before you make a decision.
4. Get Professional Advice
If you’re not sure what to do or you want some professional advice, it’s always worth getting in touch with a remortgage conveyancing solicitor. They’ll be able to help you understand the process, answer any questions you have, and give you some advice on the best way to move forward. They will also streamline real taste transactions and act as the middleman between you and your mortgage lender.
5. Check Your Credit Score
Your credit score is one of the most important factors lenders will look at when considering your mortgage application. This number is based on your credit history and determines how likely you are to repay your debt. You can get a copy of your credit score for free, so make sure you check it before you start applying for mortgages.
6. Start Saving
When you’re remortgaging, you’ll need to have enough money saved up to cover your deposit and fees. This can be a lot of money, so it’s important to start saving as early as possible. You might also want to consider setting up a monthly budget, so you know exactly how much money you have to work with each month.
7. Find A Good Mortgage Broker
A good mortgage broker can be a huge help when remortgaging. They’ll be able to find you the best deal for your needs and help you through the entire process. Make sure you do your research before you choose a broker, and ask around for recommendations.
8. Know Your Options
When you’re remortgaging, you’ll have a few different options to choose from. You can go with a fixed-rate mortgage, which means your payments will stay the same for the life of the loan. Or you can choose an adjustable-rate mortgage, which means your payments could go up or down depending on interest rates. There are also hybrid mortgages, which offer a combination of both fixed and adjustable rates.
9. Keep Up With Your Payments
It’s important to keep up with your mortgage payments, even when you’re remortgaging. If you miss a payment, it could damage your credit score and make it harder to get approved for a new mortgage. Make sure you budget for your mortgage payments and try to stick to a fixed schedule.
10. Don’t Panic
Remortgaging can be a daunting process, but don’t panic! If you follow these tips and take your time, you’ll be able to find the perfect mortgage for your needs. And remember, if you ever have any questions or concerns, always ask for help.
There you have it — 10 tips for remortgaging for the first time. By following these tips, you’ll be able to make the process a lot easier and less stressful. Good luck!