Remortgaging in 2008 what to consider : Traffic Exchange, Free Traffic Exchanges, Best Traffic Exchange
Remortgaging in 2008, what to consider
The first thing to consider is probably the reason why you want to remortgage in the first place. The most likely reason is that you’ve been on a fixed rate deal for the past three years or so and it’s come to an end or it will soon. You may have other reasons of course such as wanting to use up some of the equity in your property to finance a major expense of some kind like a new boat or major construction work to the house.
Whatever your reason for looking at remortgages your first consideration is whether that’s the best way to achieve your objective. Once you’ve made sure that it is then what else is there to think about. Well now if you’re considering this step because your fixed rate deal is ending or if you started planning your project some months ago you probably have that horrible feeling right now that someone has pulled the rug from under your feet.
In a sense they have! Compared to, say a year ago mortgage interest rates have risen considerably causing repayments on all variable rate mortgages to take a bigger chunk out of people’s monthly income. That’s why you who are coming to the end of a fixed rate deal are in for such a nasty shock.
If you’re looking to remortgage at the end of a fixed rate deal don’t forget to check whether you’ll still be liable for an early settlement fee. Most fixed rate deals do carry such a condition and some go on beyond the end of the fixed rate so beware.
It’s not as easy to get a mortgage now as it was twelve months ago but it is still possible and even in today’s market you may still find a lender who can offer you a better rate than you current lender’s standard variable rate that you’ll be on now or very soon. Don’t forget to check what other deals your existing lender has to offer. They don’t always tell you if you don’t ask!
If your remortgage is for some other purpose then it’s fair to assume you’ll be wanting to borrow more than you have outstanding at present. Presumably you wouldn’t be contemplating doing that unless you’re able to afford the increased payments you’re already suffering due to the rate increases. Obviously if you can find a new deal on a better rate so much the better but it’s not as easy as it was a year ago. The maximum percentage of your property’s valuation that you can borrow has reduced since last year too. 100% and 100% plus mortgages are a thing of the past but most remortgages don’t involve as much as that anyway.
When you find a lender that’s willing to offer what you need you should consider the fees involved. Some deals involve substantial set up fees, usually where a lower interest rate is offered. Some offer no up front fee at all. If your present mortgage carries an early settlement fee you should compare that with the set up fee on a lower rate deal. It may be that accepting a slightly higher rate in return for no fee will cancel out the early settlement fee.
There are other fees to consider of course. Valuation fees and legal fees. You need to take all these things into account when you weigh up the best way to proceed with your remortgage project.
The easiest way to find your way through this minefield is to get someone else to do it for you. By far the best way to go about looking for remortgages is to consult a good independent mortgage broker.
Author Bio
Martyn Barberry
Stirling Mortgage Network
Remortgaging in 2008, what to consider / Author: lexisclick
