Thinking About Re-mortaging? Read These Tips First
More and more of use are signing up for limited time low interest rate mortgages
and then switching to a different mortgage when the low interest period expires.
It's a great way to save money and can, potentially, save you thousands in
repayments. However, there are a few things you need to think about befoe you re-
mortgage.
Firstly, check there's no early redemption penalty on your mortgage. These days
most early redemption penalties expire at the same time as the low interest rate
period, in which case there's no problem. Make sure that if your mortgage has an
early redemption penalty that it does last beyond this period, otherwise it could cost
you a significant amount of money.
Secondly, remember to take into account any additional costs when you re-
mortgage. These could include an application fee for your new mortgage, legal fees,
a valuation fee, or a fee for paying off your existing mortgage early. You need to
include these fees in your calculations ehn you work out how much you'll save.
Thirdly, consider taking financial advice from a qualified financial advisor. If you go
to one who charges a fee for there services rather than earning commission on
investment products, you can be sure of unbiased help. Even if you think you know
exactly what you're doing, a financial advisor will often point out details that you
hadn't considered.
Finally, make sure you read the terms and conditions of your new mortgage. It may
seem like a good deal but if it turns out to be less flexible in the long run then it
may end up costing you more than you save.
As long as you tread carefully, and get good advice, re-mortgaging is an excellent
way to save money on your mortgage.
Robert Armstrong is a contributor to Consumer IQ – a site dedicated to publishing details of the UK's best high street and online deals.
Robert Armstrong
