As you are approaching the end of your fixed mortgage term, you will need to start thinking about taking out a new product. Ideally, you need to start searching around 6 months early.
When you take out a new mortgage product, it is either called a product transfer or a remortgage. A product transfer is when you take out a new mortgage product with your existing lender, whereas, a remortgage is when you take out a new mortgage product with a different mortgage lender.
You are under no obligation to stay with the same lender; in fact, you may be able to access better products if you search elsewhere.
Lenders rarely reward you for being loyal. This is why we always recommend looking around for more deals and seeing what is on offer. You could always search through your current lender for another product, however, it’s just as easy to switch products through a different lender.
For convenience, you could argue that staying with your current lender is the right idea. On the other hand, you could say that if there is a competitive deal out there that involves a little more paperwork, it may be worth it. As your Mortgage Broker in Leeds, we will search around for products for you, and arrange all of the paperwork! This will take all of the stress away from the process.
We have many different lenders on our panel, each holding different lending criteria. Some of which, have competitive deals available that may be the perfect match for you and your individual situation.
Nowadays, it’s way too easy to perform a mortgage switch online; sometimes this is not a good thing!
You should take your time if you’re tempted by an online switch. Taking out the wrong mortgage product could make you lose a lot of money further down the line, so you need to make sure that you do this right. Your current lender may not offer any, but if you’re looking for Remortgage Advice in Leeds, feel free to contact our mortgage team.
As a recommendation, before switching online through your lender, take a moment to look for deals elsewhere and get some advice if you need to. More often than not, people are unsure of how the process works and what product they are taking out; when this is your situation, it’s important to get an expert’s opinion.
When you switch online, you are also missing out on the consumer protection you would’ve got had you spoken to a Mortgage Advisor in Leeds. If you take out a wrong product, you have no say as you took it out yourself with no advice.
Once you lock into a new deal, you’re stuck on that rate until your fixed term finishes unless your want to pay an ERC (early repayment charge). An ERC is calculated by the mortgage that you took out and how long is left on your term, therefore, if you take out the wrong deal and want to switch right away, this could be costly.
Unfortunately, lenders love it when this happens as they receive a big pa yout. This is why they rarely offer advice during a product transfer or remortgage. We have encountered multiple different scenarios in the past where this has happened.
One notable case of ours was when a customer who was pregnant, chose not to take mortgage advice and then was declined for a small further advance to fund the planned home improvements she needed to create a room for her child.
Because of the choice that the customer made, she had to pay a very large early repayment charge, in order to allow her to swap to a new lender that would be willing to grant her the necessary funds.
It’s heartbreaking when we see this happen as we wish we could’ve helped in some way. This is why it can benefit you to speak with an expert and get Remortgage Advice in Leeds.
Remortgaging and transferring products is a process that almost every property owner will go through. During your first remortgage, it may be best to get Remortgage Advice in Leeds so that you can get through the process stress-free and right the first time.
You can book your free remortgage review with Mortgage Advisor in Leeds online. This will definitely help you get an idea of what sort of deals you can access and what will be your beneficial option.
It costs nothing to get a second opinion, that’s why our free remortgage review is so brilliant! The remortgage market is a very competitive one and searching the market for a new deal can often help you to save you a lot of money.