Top tips when remortgaging

Mortgage costs are the single biggest spend in most people’s monthly budget. With mortgage rates still high and the cost of living still putting pressure on everyone’s finances, it’s vital to get the best possible deal when arranging your next mortgage.

Here we focus on helping those who are staying put in their current home but who want, or need to rearrange their mortgage.

Lenders review their product ranges on a regular basis, especially during periods of volatility like we are seeing at present. Around 6 to 12 months before starting the remortgaging process, watch the market and see what rates are on offer, which providers are active and what different types of mortgage are being offered.

Be aware of when your preferential rate period is due to expire, start the remortgaging process at least 4 to 6 months before your current rate expires.

It’s always a good idea to contact your current mortgage provider to see what they can offer first. They know you and if they can offer the right mortgage at a good rate, this can short-cut the process significantly.

As well as considering what your existing lender can offer, you should also shop around and see what is available in the wider market.

This can help with initial affordability, especially with mortgage rates still as high as they are.

Understanding the different types of mortgage and selecting the type that’s right for you is vital before you start searching for your next mortgage.

Crunch the numbers to see what you can afford and make sure you build in some flex in case rates continue to rise. Use a budgeting tool and mortgage calculator. And review your credit score – this is something all mortgage providers will do so make sure yours is in the best shape it can be before you apply. To keep an eye on your credit, consider registering with Check My File.

A mortgage adviser may be a good option; they know the market and can conduct whole of market reviews to find you the most suitable deals. Also, check your employee benefits to see if your employer offers a mortgage advice service – these services can often cost you little but they are likely to search the market or a panel of providers to find you the right mortgage with a reputable provider.

Your home may be repossessed if you do not keep up repayments on your mortgage.