Keep Ahead Of The Game To Remortgage
Although there are less mortgage deals on the market, it need not be all bad news for those looking to remortgage. By using a broker and starting their search early, there are still some good deals to be found, especially if you have equity in your home.
Many people are facing having to remortgage their properties in the next few months, and many will be coming off favourable fixed-rate deals and may find themselves hit with much higher monthly repayments, so called "mortgage shock".
If your fixed rate mortgage deal is due to come to an end in 2008, it is best to be prepared. Start looking for your new mortgage three months in advance.
Most two-year deals are slightly longer than that, so those being advertised now will probably last until the end of July 2010, and mortgage lenders usually make offers that remain valid for six months.
It is hard to find a mortgage that does not have an arrangement fee attached to it, but you should not have to pay that yet, although you might have to pay an application charge or booking fee – which may not be refundable.
Despite the fact that the mortgage market has shrunk from over 15,000 products to less than 4,000 it is definitely sensible to use a mortgage broker, as these professionals still have access to many mortgages that you will not find on the High Street.
Brokers may recommend that you add fees to your loan, as, if you do not end up taking out the mortgage loan, the lender will be unlikely to chase you up for fees that have not been paid. Once you have paid them … they’re gone!
Don’t be afraid to start early in the search for your next mortgage deal; this will give your broker and you time to understand each other, your requirements, and the best deals to suit your own personal circumstances.
Many people who will be remortgaging in 2008 will be in the happy position of having plenty of equity in their house, despite the falling market. With 80% loan-to-value, you will still have access to some good deals, and you will have fewer worries about your credit rating with higher equity in your property.
