If you own your own house and have a mortgage on it, you could be able to save money on that mortgage. Most people are happy with their house but feel they are paying too much on their mortgage. The process of re-mortgaging does not usually involve moving home or taking out a second mortgage on the property; it is in effect the transfer of a mortgage from one lender to another. Homeowners may choose to re-mortgage for various reasons, usually to reduce the overall monthly mortgage payment amounts. Standard variable rate mortgages can save you money if you pick the right deal, so, how do you pick that right deal?
First, ask your current lender if you can switch to a better rate and check if there are any exit fees to pay, if so, find out how much they are. If your income has recently risen, a flexible mortgage may be what is best for you as it will enable you to make extra payments. Fixed rate mortgages are best if you need to know exactly what you will be paying every month. Tracker rate deals rise and fall in line with bank of England interest rates, these mortgages may start off cheaper than fixed rate mortgages but will rise if interest rates increase.
The next step is to compare what other mortgage lenders are offering by looking at price comparison sites – making sure you check how much the fees and charges are, as well as looking at the headline interest rates. These hidden charges can add up to one thousand pounds or more. Finally, it is advisable to talk to an independent mortgage broker who can advise you about the best mortgage deal for you and your individual circumstance.