Teon Leggett’s top tips for remortgaging your home
Organisation is key when it comes to remortgaging; whether you’re well into your term, or this is your first time remortgaging, it’s important to understand the impact the new rates will have on you and whether seeking a better deal is an option.
Teon Leggett, Managing Director of Lendese, offers his top tips for remortgaging your home and what you can do now in preparation for when your current term ends.
Top tip 1: don’t rely on your broker or bank to contact you
Although most banks or brokers should contact you within 7 months of your term ending, unfortunately, the reality is that many simply don’t. With the uncertainty around mortgages in recent times, tip number 1 is to take the initiative and contact a trusted broker – like one of our experts – who can go through your options and help you make a plan should rates cause an uplift in your monthly repayments.
Top tip 2: don’t leave it too late
Time can be the enemy when it comes to remortgaging. Delaying looking at your options in the hope that rates will improve or house prices will increase, could end up costing you.
In the past here at Lendese, we’ve had clients call us a month before their current deal ends, which is leaving it far too last minute. Yes, nothing is impossible, and it can be done with the right people in place (aka your experts at Lendese). But you’ll be relying on the speed of the lender and the legals which could see you end up on a variable rate with a much higher payment for a period of time, which may not be an option for most.
Top tip 3: make sure credit commitments and general spending is under control
When you’re due to remortgage, a lender will look at credit scores, agreements and overall spending. If overdrafts are consistently used to the limit, credit cards are maxed out and store cards are acquired just to get a 10% discount, this can affect the rates you’re presented with.
Although lenders understand that times are tough, knowing what and where you’re spending can have huge benefits when it comes to getting those low rates.
Top tip 4: be ready to move quickly
With lenders changing their rates almost weekly, and sometimes with 24 hours’ notice, it’s important that you’re ready to move. Standard documents you had to provide when you purchased the house will likely be needed again, so make sure you either have them ready or have access to them quickly. Nobody wants to lose an interest rate because they can’t find their bank statements!
Top tip 5: speak to someone you can trust
Finding a reputable and trusted advisor cannot be underestimated. A great broker will have the client’s best interests at heart and take the time to understand their needs, listen, and use the information to provide a solution that could save them thousands over the years.
Finding this type of broker needn’t be difficult. Reviews, word of mouth and taking the time to speak with a broker should tell you everything you need to know and whether these are the people to entrust with your financial decisions.
Top tip 6: remember that your current lender doesn’t always know best
Loyalty doesn’t necessarily mean anything when it comes to your mortgage, and the deal offered by your current lender may not be the best you can get. With hundreds of lenders and just as many deals available to help, there may well be a more suitable offer for you, so it’s vital you speak to a trusted broker. Remember that your bank will only give you the deals they have to offer.
There you have it – Teon’s top tips for when you need to remortgage and how these can set you up for the best deals, even if you’re not ready to look just yet. For more information or to speak to one of our financial experts regarding your remortgaging options, get in touch.
