Remortgaging in Scunthorpe offers opportunities to save on mortgage payments or tap into the equity locked within your home. It’s a viable option for homeowners seeking to optimise their finances or release funds through equity release.
Many homeowners start the remortgage process in Scunthorpe around 3-6 months before their current mortgage deal expires. Some homeowners are uncertain about remortgaging during a fixed term, especially earlier than the typical timeframe.
A fixed term mortgage involves an interest rate that remains unchanged for a predetermined period, usually between two and five years. Throughout this period, you have a contractual obligation to maintain regular monthly mortgage payments.
In this article, we will explore the possibility of remortgaging in Scunthorpe during a fixed term and discuss whether it’s a viable option to consider.
When should you look into a remortgage in Scunthorpe?
Typically, homeowners in Scunthorpe aim to secure a remortgage for their property approximately 3-6 months before their existing mortgage deal expires.
This time frame allows ample opportunity for a mortgage broker in Scunthorpe to fulfill their role and ensures a smooth transition, as your new deal will be ready to commence when the old one concludes.
Remortgaging within this timeframe allows you to avoid being placed on your mortgage lender’s higher standard variable rate of interest (SVR), which often exceeds the Bank of England base rate.
The SVR typically remains higher than the Bank of England base rate and fluctuates at the discretion of the mortgage lender, often resulting in more expensive terms.
Opting for this route is unlikely to be the most favorable choice. Instead, your mortgage advisor in Scunthorpe will utilise this period before your current deal ends to search for suitable options tailored to your specific requirements, such as if you intend to remortgage for home improvements.
Can you remortgage in Scunthorpe during a fixed term?
Remortgaging in Scunthorpe during the fixed term, prior to the usual 3-6 month period, can be classified as an early remortgage. Technically, it is possible to engage in early remortgaging while still within the fixed term.
It’s important to consider that pursuing an early remortgage may result in incurring early repayment charges imposed by your mortgage lender. These charges arise from breaking the contractual agreement you entered into at the beginning of your deal.
While there are no specific restrictions preventing you from opting for an early remortgage, it’s crucial to weigh the potential financial implications of the associated early repayment charges.
Should I remortgage in Scunthorpe early?
Determining whether it’s advisable to pursue a remortgage in Scunthorpe during your fixed term depends on your specific goals.
It is always recommended to seek professional remortgage advice in Scunthorpe to assess your situation accurately. Typically, homeowners consider remortgaging when there is a valid reason to do so.
Common motivations for remortgaging include securing a better deal if you are currently paying a higher interest rate than what is available in the market. Additionally, remortgaging can help safeguard against potential interest rate increases and inflation changes.
Ultimately, the key consideration is ensuring long-term financial viability, taking into account the potential cost of early repayment charges.
It’s important to assess whether pursuing an early remortgage will genuinely benefit you or if waiting would be a more suitable approach. Evaluating the overall impact on your finances is key in making an informed decision.
Why don’t people usually remortgage in Scunthorpe early?
It is generally advisable to avoid remortgaging early during the fixed term due to the potential high costs associated with early repayment charges. The earlier you choose to remortgage in Scunthorpe, the higher these charges may be.
If the financial benefits outweigh the costs, and it aligns with your overall savings goals, early remortgaging could be a viable option. It is crucial to consult with a mortgage lender in advance to assess your individual circumstances and determine if this is the most suitable course of action for you.
Their expertise will help you make an informed decision about whether early remortgaging is the optimal route to pursue.
Can I remortgage in Scunthorpe early with the same mortgage lender?
While the typical understanding of a remortgage in Scunthorpe involves obtaining a new mortgage with a different mortgage lender, it is worth noting that you may have the option to stay with your current mortgage lender through a process called a Product Transfer.
Surprisingly, this option is often just as popular as a traditional remortgage.
Your mortgage lender, much like your mortgage advisor in Scunthorpe, may proactively inform you when your existing deal is nearing expiration, allowing you to plan for your remortgage in Scunthorpe. It is also possible to explore an early Product Transfer.
While an early Product Transfer may involve an early repayment charge, it can be advantageous in terms of lower fees compared to remortgaging with a new mortgage lender.
By staying with the same mortgage lender, you can potentially avoid additional legal costs associated with switching to a new mortgage lender for your remortgage in Scunthorpe.
Fees to Consider with an Early Remortgage in Scunthorpe
When you decide to remortgage, it’s important to be aware of the various fees involved in the process. This is particularly relevant if you are considering an early remortgage in Scunthorpe, as you will likely encounter an early repayment charge.
Early Repayment Charge
This charge is almost always applicable when you intend to leave your mortgage before the agreed-upon period, especially during the fixed term. The earlier you exit your contracted mortgage, the higher the cost of this charge.
It is imposed because you are breaking the contractual agreement you made with your mortgage lender regarding the repayment period.
Exit Fees
Exit fees are commonly associated with most mortgage types and are typically required upon fully repaying your mortgage. They may apply at the end of your full mortgage term or when you remortgage in Scunthorpe to a new deal.
Valuation Fees
Valuation fees are often associated with remortgaging in Scunthorpe, as they are incurred when you switch to a new mortgage lender who needs to assess the value of your property.
While some mortgage lenders may offer this service for free, others may charge a fee. Your mortgage advisor in Scunthorpe can provide more detailed information during your mortgage appointment.
Arrangement Fees
Arrangement fees, also known as product fees, are typically associated with specific mortgage deals. In many cases, you can choose to add these fees to your mortgage balance and pay them off monthly. Alternatively, paying them upfront is also an option.
It’s important to consider these fees and discuss them with your mortgage advisor in Scunthorpe to gain a comprehensive understanding of the costs associated with your remortgage.
How to Remortgage in Scunthorpe Before Your Fixed Rate Ends
Typically, most mortgage deals, including fixed rates, require a commitment of at least 6 months before you can consider remortgaging in Scunthorpe.
Therefore, the chances of being able to remortgage during this initial period are very slim, however, it is possible to remortgage in Scunthorpe afterwards, although it will come with higher fees the earlier you choose to do so.
To determine the specific fees involved, it is advisable to contact your mortgage lender directly. Additionally, seeking guidance from a trustworthy and qualified mortgage advisor in Scunthorpe is essential before making any decisions.
We recommend booking a free remortgage review, where a member of our experienced remortgage advice team can discuss your reasons for wanting to remortgage in Scunthorpe early. They will provide insights on whether it is more advantageous for you to wait or proceed with your plans as intended.
Date Last Edited: January 23, 2024
