The remortgage market right now in the UK is booming. Lenders are bending over backwards to meet demand. The choice of remortgaging products available is now huge. Are you considering to remortgage and wondering why you should consider using a remortgaging mortgage advisor?
Around a third of all home loans made in the UK are actually remortgages.
The number of remortgaging approvals saw a 15% year-on-year rise to 30,200 in July 2019. That’s the fastest increase since May 2018.
What are the reasons for this flurry in activity according to the Financial Times? It’s all driven by low interest rates, a strong labour market and despite persistent uncertainty over Brexit.
Today, more of us would sooner not go down the DIY remortgage route. We’re opting instead to get expert help. In fact, more than 66% of people are now choosing to have their remortgage deals arranged by their mortgage broker.
There are good reasons for using a qualified and regulated mortgage advisor for your remortgage.
1. You Cut Through the Complexity
There are so many different re-mortgaging products now on the market. So you’ve more decisions to make than ever.
Although when you re-mortgage, you’re in essence ‘switching’ products, there’s a lot more to bear in mind.
- Should you opt for a fixed-term product? (Five-year fixes are currently the most popular re-mortgaging choice). Or choose a tracker or discounted product?
- Do you want to make over-payments?
- Should you borrow more to release equity?
- Is the product portable?
- Will you have to pay any of these? Early exemption fee? Booking fee? Valuation fee? Arrangement fee? Conveyancing fee?
- Finally, will you even qualify under your current financial situation if you apply?
A good mortgage broker won’t even start to suggest the right product for you until he has assessed your current mortgage, your financial situation and your future plans.
Having that impartial advice and oversight can make life much easier when you’re re-mortgaging.
2. You Could End Up Missing Opportunities
For most people, their mortgage is their biggest financial commitment. So it’s a no-brainer that your largest debt can give you your largest savings.
Sometimes, when you switch from your lender’s SVR (standard variable rate) to a cheaper fixed rate, this can be £1,000s each year.
When sums this large are at stake, it’s vital you have a full grasp of the complexities. You need to understand the nuances involved with any re-mortgaging products you’re considering.
Failing to understand such a huge expenditure could have a big impact. This is particularly if you’re already struggling in the current economy.
3. You’ll be Able to Cut Through the Confusion with a Remortgaging Mortgage Advisor
In 2019, there are so many re-mortgages on offer in the marketplace. So it’s nigh on impossible for any single person to research them all.
Yes, it has become simpler thanks to comparison websites. But there are two important differences between these websites and a broker.
Comparison sites will crunch your figures and weigh up the mortgages that are generally available for them to consider.
But, generally, they won’t have access to any broker exclusive deals negotiated with a bank or building society. Nor will they give you full oversight of the terms and conditions or let you know if you’re actually eligible.
Whatever your circumstances, a broker is much more likely to find a deal for you. Perhaps you’ve changed job, retired, become self-employed, have old debts or an unusual home? Often you won’t find these deals on a comparison site.
4. You’ll Save Time and Paperwork with a Remortgaging Mortgage Advisor
Neither will the website help you to actually get the mortgage. They will present you with the offers available to them – and then it’s all up to you.
A good broker will source you the market-leading deals you’d not be able to get elsewhere. He’ll also handle the whole application for you.
5. You get an extra layer of security
A broker will be able to quickly source a relevant product that fits your credit history. But most important he or she will offer an extra layer of protection if things go wrong. That will carry more clout with lenders to ease acceptance on otherwise unobtainable re-mortgages.
Final Word to the Wise
How do mortgage brokers make money? They do this in one of two ways. They either receive a commission fee from the lender. It doesn’t affect what you pay and will always be disclosed to borrowers. Or they’ll charge you an upfront broker fee.
Mortgage brokers are regulated by the FCA. So the fact they earn commission shouldn’t influence their recommendation. The advice should be genuinely unbiased.
Do you need help from a re-mortgaging advisor who’ll sit down with you to answer all of your questions and walk you through the process?