More and more people are looking for a UK remortgage in order to secure a lower interest rate to replace their current mortgage. The effects of a UK remortgage can be lower monthly repayments or a shortening the mortgage’s term. Because of this surge in personal research on and interest in UK remortgages, many lending institutions have taken the lead and are making more remortgage offers, including those set at tracker, variable, fixed, and capped rates.
Due to the plethora of UK remortgage offers available and the specifics of each UK remortgage, it is most likely best to begin with a neutral mortgage broker, one not employed by a specific lending institution. From this mortgage broker you will figure out what the best plans for you are. Once you have decided on a lender, you may then want to work with a UK remortgage advisor employed by that lender. This mortgage advisor will know the ins and outs of every mortgage offered by the lender.
“Remortgaging advice is governed by the FSA, and as a consequence, the mortgage broker is required to give impartial advice. They can give quotes but they can’t recommend a particular mortgage. That is for you to decide. In addition, the mortgage agent should tell you if he (is) working for a particular company and is limited in the range of quotes he could advise on,” according to Richard Pettinger, writer on the UK housing market and UK mortgages, for EzineArticles. So, in effect, if the advisor works for a specific company and can only advise on certain mortgages, you are getting biased advice.
It is of utmost importance that you understand the early repayment penalties on your current mortgage and any fees involved in your new UK remortgage. If they are unequal, and not in your favour, there may be no value in a remortgage for you at this time.
If, however, a UK remortgage will lower your monthly payments, even considering the penalties and fees, there is another possible advantage: debt consolidation. Due to rising property prices, your home may be worth more now than before, allowing you to take out a larger UK remortgage. You would be able to use the extra borrowed money to pay off other loans that are suffering from higher interest rates, such as credit card debts. As always, there is research to be done and advisors to consult before making such a complicated decision
