Paul DeMarco, an ESPC Mortgages independent mortgage adviser, gives insight into what homeowners should consider when remortgaging a property.

If your current deal is about to end and you want to see if you can save money by switching mortgage lenders then remortgaging can be a great option. A remortgage is when a homeowner moves their mortgage to a new lender or switches to a different deal offered by their current lender. This is also commonly known as a product transfer with the existing lender. 

Deciding what type of mortgage is most suitable for you often means reanalysing your options. Most lenders are happy to offer existing clients a new competitive rate at the end of a fixed rate period as they are usually keen to retain the clients' usiness. However, it may suit some borrowers to revert to a standard rate with no tie-ins, for instance, if you are thinking of moving home shortly or perhaps aren't sure of your shorter-term plans. Sticking with the variable rate allows for a greater degree of flexibility as there are often no early repayments charges involved if you switch lender or pay off your mortgage in full – but it’s worth noting some lenders may charge a small mortgage exit fee. 

How should property owners begin the remortgaging process? Firstly, your new mortgage provider will need to know how much your property is worth by carrying out a valuation. Next, you will need to look at your last mortgage statement and work out how much you have left to pay on your current mortgage. You may have to pay an early repayment charge if you leave your current mortgage so check your paperwork and contact your ESPC mortgage adviser if you are unsure. However, remortgaging is usually done just prior to a clients fixed rate coming to the end of the fixed rate deal. 

If you are remortgaging your property without moving home then you should consider what alternative deals are available to you. You should always check with your existing lender as to what they can offer you. This will give you a starting point in order to make comparisons against. When you know what deal is available to you, speak to your ESPC mortgage adviser to see if we think we can help you find a better solution tailored to your needs. The ESPC mortgage brokers can also look to see what your existing lender can offer you by establishing a few simple facts about your existing mortgage. 

Aim to spend as much time choosing a remortgage loan as you did when you first took out your mortgage, and always factor in additional fees and charges. 

Independent mortgage advice

If you’re swithering over whether buying with a friend is the right financial option for you, it’s worth speaking to a mortgage adviser to discuss your options.

As independent mortgage advisers, ESPC Mortgages can help with all aspects of understanding your budget, applying for a mortgage and dealing with the relevant insurance requirements.

Contact us on 0131 253 2920 or fsenquiries@espc.com

The information contained in this article is provided in good faith and is relevant for six months. Whilst every care has been taken in the preparation of the information, no responsibility is accepted for any errors which, despite our precautions, it may contain.  

The initial consultation with an adviser is free and without obligation. Thereafter, ESPC Mortgages charges for mortgage advice are usually £350 (£295 for first time buyers). YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR OTHER LOANS SECURED AGAINST IT.  

ESPC (UK) Ltd is an Appointed Representative of Lyncombe Consultants Ltd which is authorised and regulated by the Financial Conduct Authority. 

ESPC magazine

This article appeared in the August 2022 issue of the ESPC magazine. Find out more about the ESPC magazine and read the latest issue online.