If you are approaching the end of your mortgage term and have looked into all the options available, you might have chosen to remortgage. With all the right planning and preparation done in advance, re-mortgaging can potentially save you a lot of money.
Get started early
To avoid rate rises, you can secure a new deal with a lender up to six months in advance. Your current lender will usually notify you of new offers around 3 months before the end of your term which could be a quicker process if you haven’t had as much time to plan.
To ensure you are saving money at every opportunity when re-mortgaging, you can speak to a broker such as ourselves to weigh up the cost involved and this should be done around four to six months before your existing deal expires to give time for the new deal to be ready. With access to many different lenders, we can find you a deal that is better suited to your financial situation and check for the best re-mortgage rates.
Clean up credit reports
Your credit report can give lenders an idea of your financial discipline and repayment history to determine if you are reliable enough to pay back your mortgage.
You can view all your credit reports for free, so it is worth going over them all carefully as your lender could look at any one of them. A credit report holds 6 years of your financial details including your credit cards, mortgages, loans, overdrafts and some utility payments.
When cleaning up your credit report, look for any errors that can be disputed or any debt or loans that can be paid off in advance.
Get your finances re-mortgage ready
To avoid lots of questions from lenders, it’s a good idea to get your finances in order to go alongside your credit report. In the weeks and months before applying for a re-mortgage deal, there are a few things to avoid that could hinder your progress and eligibility.
- Stay out of your overdraft as this can mark you as an unreliable borrower to lenders.
- Don't apply for credit just before a mortgage.
- Avoid any heavy or erratic spending in the weeks leading up to your application.
If you still have questions about re-mortgaging and if it’s right for you, don’t hesitate to give us a call to discuss your options.