Compare Remortgages Online...

Remortgaging is the term used to describe moving your mortgage to a new lender or changing to a new mortgage with your current lender, without moving home. Moneymatchmaker.com can help with all types of remortgages including a self cert remortgage where income proof is not needed or a bad credit remortgage for people with debt problems or a debt consolidation remortgage to consolidate all of your outstanding debts into a new mortgage with a lower monthly payment.

The full range of mortgage types are available for remortgaging, including variable, fixed rate, discount, capped and flexible mortgages, poor credit remortgage or bad credit remortgage, although the terms offered by your current lender to first time buyers will not be available to you if you want to remortgage and stay put - Contact us now to compare remortgage quotes for you.

A common reason for emortgaging is to take advantage of the keen rates on offer within the mortgage market and obtain a more competitive interest rate. Mortgage lenders are so keen to get your business that they will often offer deals that result in them losing money in the short term, just to get you on board as a new customer. They aim to make a profit from you over the longer term.

In general terms, if you fall into the following categories you can almost certainly make significant savings by moving your mortgage;

• You are currently paying your lenders standard variable rate.
• You are free to pay off your existing mortgage without penalty.
• You have more than 5 years left to run on your existing mortgage.
• Your mortgage is less than 90% of the value of your property.
• You have an outstanding debt in excess of £40,000.
• You have a bad credit history or are under pressure due to money worries and need a fresh start and lower monthly outgoings.
• You are not considering moving or taking out a larger mortgage in the next few years.

These are general guidelines and even if you do not fit all of the categories it may still be worth considering moving your mortgage. For example if you only owe £30,000 you may find that the fees associated with arranging a re-mortgage out-weigh any saving to be made. However, there are some lenders who will offer to pay all the costs involved in re-mortgaging & if a deal like that can be found then you could still make a substantial saving.

 

How can I calculate the figures so that I can see how much I can save?

Write down your existing monthly mortgage payment. Remember that the monthly payment you make to the lender may include a buildings or contents insurance premium and you need to deduct that amount if this is the case.

To help you in calculating how much money you can save by switching your mortgage we have put together a remortgage calculator so you can find how much you can save each month by remortgaging.

Now that you know how much you can save, you need to take into account the fees and charges associated with arranging a re-mortgage. Obviously, if these are greater than the saving to be made then you will need to think again.

The following list will give you an idea of the fees to look for, although not all of these will necessarily apply to you;

• Lenders Arrangement Fee
• Property Valuation Fee
• Mortgage Indemnity Premium
• Brokers Fees
• Redemption Penalty on existing mortgage
• Legal Fees
• Land Registry Fees
• Local Authority Search Fee
• Charge from existing lender to provide a reference to the new lender

What are the catches to watch out for?

In broad terms, the more attractive the interest rate on offer, the more likely there are to be other conditions to watch for. These other conditions will usually fall into the following categories;

Early redemption penalties - This is the way in which lenders will ensure that you stay with them for a pre-determined amount of time. The penalties are usually calculated at a level that will take away any benefit received if the mortgage is moved. It is becoming increasingly common for lenders to impose these penalties for several years after the initial benefit has been gained. This means that in most cases you will be required to pay the lenders normal variable rate for a period of time after the fixed or discounted period has ended. Moneymatchmaker.com has access to mortgage products that are penalty free and these are worth looking at although you will usually find that they do not offer the most competitive interest rates.

Conditional Insurances - Some lenders will require you to take out their own buildings, contents or accident sickness and redundancy insurance. You may find that one, or all, of these products are required by the lender and this is a cost that you will need to take into account when assessing the product. If buildings and contents insurance is compulsory you should ask the lender to tell you how much this will cost. Compare their quotation with others you can obtain elsewhere and if the lenders insurance is more expensive, treat the difference as an additional cost when reviewing your figures.

Arrangement Fees - Lenders arrangement fees will vary from a few hundred pounds up to 1% of the mortgage so make sure you are aware at the outset how much you will be charged.