Last winter we remortgaged our home and decided to stay where we were for another 2 years. It wasn’t a decision we took lightly as there are so many things we needed to think about.
You need to think about repayment penalties. If you are paying a mortgage off early then your current lender may charge you a set percentage. It is always worth fishing the paperwork out and checking what your terms were again.
Next we looked at what we needed to make our house a proper home. We knew that we had a kitchen to complete rip out as well as tired carpets and furniture to upgrade. We looked at various loan options. This was because we wanted to see what difference a loan would have with us rather than increasing the mortgage amount to fund the property upgrades. It is worth looking at both options to find the right one for your family finances.
Another thing we didn’t think about were upfront fees. I would now recommend that you save a small amount in fees. If you are using a broker then compare fees BUT what is most important is finding the right broker for you. We were so lucky as we had one that was willing to answer the silliest of questions and repeatedly! He was also good at chasing things up for us from our lender and solicitor.
Remortaging was simpler than we thought and it wrapped up within 3 months of us starting the process. That was because we had another person on our mortgage and it was a leasehold property so usually it can be a really quick and easy process.
Have you thought about remortgaging? With the current market like it is it really is a valid consideration as it can free up much needed funds but also as the market changes you can save money with a better interest rate and term. If you want help on how to have a smooth remortgage process you can find more info here.