One of the best ways to cut down on costs is to remortgage; depending on how much you’re currently paying, you could save a few hundred pounds each month, as well as several thousand pounds on your mortgage overall. However, remortgaging can be complicated, and it’s a good idea to know what obstacles you might face along the way. Here, Norton Finance explains some of the things you need to know before you begin the process.
Like many things in life, remortgaging your home will most likely take longer than you expect it to. Because of this, it might not be the best option if you’re hoping to quickly cut down on your current expenses. As a general rule, it will take between one and two months, although the exact timescale will be dependent on the type of mortgage product you opt for, and whether or not you decide to change to another lender. There is also the possibility that your personal financial circumstances may result in complications with the application, which could delay the process even more. However, if you’re aiming for long term savings, Norton Finance believe that it’s a great option.
If you decide to go ahead , it’s best to initially check what your existing lender is willing to offer; if they believe that they may lose your custom, they may consider providing you with a more competitive mortgage deal, and furthermore, the process is likely to move along a lot faster than if you switch to a new lender. Once you’ve spoken to your lender, you should then compare their offer with other lending institutions. This may be a little time consuming, but Norton Finance say that it’s important, as you may find a significantly cheaper deal if you shop around.
Another important factor to keep in mind, Norton Finance add, is that you will incur fees when your remortgage, and these need to be taken into account when you’re considering whether or not switching is worth it. These will be mentioned in the application, along with the rest of the terms and conditions; Norton Finance recommends that you go through this information carefully, so as to make sure that you know exactly what you will be committing to. Remortgaging is something you will most likely only do once, so it’s crucial that you take the time to understand what kind of agreement you are entering into.