Is it important to Re-mortgage?
Hi, my names Scott and I am a mortgage adviser. I am based in southside of Glasgow although I serve the whole of the UK. I am also the director of Only Mortgages and through these articles I aim to guide you on the mortgage market. This article is going to look at re-mortgaging, why it is important and the benefits it offers.
If you’re coming to the end of your fixed or discounted rate mortgage deal, now may be the best time to re-mortgage to a better one, a broker can make this process easier for you. This is especially true if you have a fixed-rate mortgage as if your interest rates are higher than what the market is currently offering, it could be worth exploring ways to save money, reduce years or release equity.
In this article, I compare how the pros and cons of using a mortgage broker, the fees involved, and more.
Do I need a broker to re-mortgage?
While it is not a requirement, you could potentially save thousands off your mortgage by re-mortgaging with the help of an expert. We look at your current deal, your financial situation (such as income, debts and day-to-day spending) to determine which product type would be best for you, then use their market access to find the best deals.
The mortgage market can be difficult to navigate if you are not sure which lenders to approach. Brokers are obliged to offer clear and accurate advice when they recommend a re-mortgage product to suit your needs, we do this by assessing your circumstances.
There are plenty of benefits to working with a mortgage broker, though you can also conduct your own research and find a re-mortgage deal. To help you decide, we have explored the pros and cons of each in the sections below:
Direct
You can go directly to your current bank or another lender of choice, if you do this you may miss out on the best re-mortgage deals and rates. However, it is still worth approaching your current bank and other lenders to get an understanding of what may be available to you.
The benefits to going it alone may be that you will not have to pay a broker fee, though we offer free consultations therefore you can be rest assured that the advice to receive will be impartial.
While comparison websites can give you a rough estimate of what may be available to you, many of the companies in fact pay to be featured there, so you will not get a clear idea of what is truly available and best for your requirements.
Broker
There are plenty of benefits that come from working with a quality broker to help you re-mortgage.
These include:
- Access all areas: I am an independent broker. This means I can access and compare deals from a huge variety of lenders to ensure that you get a re-mortgage product with the most competitive interest rate and fairest terms.
- Recommend which re-mortgage type: Whether you’re after a fixed-rate, tracker, repayment or interest-only re-mortgage, I will be able to assess your needs and circumstances to see if your preferred re-mortgage type is right for you.
- Time saved: I can find deals and work with a lender on your behalf, making your re-mortgage search much speedier and more convenient. After all, why spend hours researching deals that may not be right for you when I have the information at their fingertips?
- Quicker application: Following on from the last point, because you may have saved lots of time by working with a broker, your mortgage application may also be pushed through quicker. A typical re-mortgage application can take between four to six weeks, though it may be possible to secure a deal before then.
- Specialist areas: If you have unique circumstances (for example, you’re a self-employed individual looking to re-mortgage a non-standard property), then we can match you with an expert who has similar experience in arranging these specialist mortgages and re-mortgages.
- Bad credit defence: If you have adverse credit, then I can review your credit report and overall profile to gauge what sort of re-mortgage with bad credit, you could get.
- Calculations: I can work out how much you could be able to borrow based on your income, deposit amount, debts and monthly obligations.
- Honesty: Brokers who are regulated by the Financial Conduct Authority (FCA) are obliged to provide you with transparent and honest information regarding your circumstances and options, so even if your current deal is better than any products available on the market today, I will be truthful and honest with you.
- I keep you updated: Mortgage policies are updating all the time, so the criteria to qualify for a re-mortgage or mortgage will also change. However, I will be aware and fully informed of these changes before the public will be.
- You have more rights: If later down the line, you find that the re-mortgage recommended to you is not suitable, you have more options when it comes to getting compensation. However, I am regulated by the Financial Conduct Authority (FCA) for your peace of mind.
- Less chance of getting rejected: Because I fully understand the restrictions and criteria of each lender, they can put forward your application with a greater chance of being accepted.
- Fee management: I may be able to waive some lender fees, which will save you more money.
I also help applicants who have previously been declined for a mortgage
For more information and to get a quote, get in touch. I am experienced in arranging re-mortgages for many and can be especially helpful if you have bad credit, are self-employed, if you’re a first-time buyer or ex-pat, or any other applicants with niche requirements.
It is free to get in touch, there is no obligation to take things further, and your credit score won’t be affected.
Scott McKellar
Only Mortgage & Protection Ltd
07976000748
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