When it’s time to remortgage make the right decision, not just the easiest one
Posted on 1 March 2017 by
My existing deal ends soon and my lender has written to me offering a new lower rate. Should I take it?
When you’ve got an existing mortgage deal that is about to come to an end, it can be a good time to look at maybe restructuring your finances as well as switching to a new lower rate. However, there’s an old saying that if something looks too good to be true, it probably is, and whist lenders have an obligation to look after their existing customers whose current deals are ending, some do it much better than others, especially if you are looking to borrow more money.
Lenders will normally contact you some months before your current rate expires, and there’s always a tendency when faced with something that we don’t deal with very often to take the easy option, the path of least resistance, even more so when they offer to waive any early redemption charges (ERC’s) if you do it now! So if your lender hands you what on the face of it doesn’t look like a bad deal, you’d be forgiven for saying to yourself, “well it must be pretty good or they wouldn’t be offering it” and reminiscing back to the hassle you had getting the mortgage in the first place, and signing on the dotted line.
However, before you put pen to paper, it’s worth pausing for a minute, and seeing what else might be available to you. After all, if your current lender is offering you something tasty, but only waiving the ERC’s if you do it now, then maybe there are other lenders out there who would welcome your custom, and your lender’s just trying to get you to stay with them before you are wooed away by what else might be out there? Then you remember all the slightly different ways of assessing whether you can afford your mortgage that lenders had first time around, and that nice easy “sign here and it’ll be over quickly” edges back into pole position again.
There’s no doubt that getting a mortgage, and even remortgaging when you’re not borrowing anymore extra money can be a bit daunting when you think about the time, aggravation and possible heartache it’s going to take in sorting out, but that’s where your friendly neighbourhood mortgage broker rides to the rescue and saves the day. It’s our job to find you the right deal, sort the paperwork out, and get everything through for you as hassle-free as possible, and as quickly as possible. We will also look at the deals you’re being offered by your lender and factor them into what else is available to you which will help you make the right decision, not just the easiest one.
So you can sit back and relax in the knowledge that your broker is looking out for your financial wellbeing.
For more information on product transfers and remortgaging please call 0344 346 3672 or submit a enquiry here.
The blog postings on this site solely reflect the personal views of the authors and do not necessarily represent the views, positions, strategies or opinions of John Charcol. All comments are made in good faith, and John Charcol will not accept liability for them.