Can You Remortgage in Scunthorpe During a Fixed Term?
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.
The Importance of a Remortgage Review in Scunthorpe
If you have been on the same mortgage rate since you first bought your mortgage, it may be time for you to look at cleaning your finances and having a remortgage review. Doing so could mean that you have access to a much more appropriate mortgage deal.
What is a remortgage review?
Simply explained a remortgage review is the process of looking at your current mortgage deal, making sure there have been no changes in circumstances and perhaps seeing if you are able to get a better mortgage deal or not.
When you make an enquiry about taking out a remortgage in Scunthorpe, your expert and dedicated mortgage advisor in Scunthorpe will want to know all about the deal you currently have, so that you can compare the different products available to you.
They will analyse your current rate of interest, all your monthly payments and your current financial and personal circumstances, to work this out. If your dedicated mortgage advisor in Scunthorpe is not able to find you a better mortgage deal, they will be transparent and say so.
Why should I get a remortgage review?
If you have been keeping up-to-date with all of your mortgage payments and have been working on building up your credit score to ensure it is in a good standing, it is entirely likely that you will be able to remortgage for a better deal.
Going through the process of a remortgage review, then switching your mortgage deal onto a new one with a new mortgage lender, is called remortgaging. You can do the same thing, but stay with the same mortgage lender and this is called a product transfer.
Depending on your personal and financial circumstances, you may be more suited for one than the other. In rare cases, you may actually find that you are better staying on your current mortgage deal and falling onto your mortgage lenders SVR, though it is more likely you will remortgage or product transfer.
It is important to remember that you are never guaranteed to be getting a better mortgage deal when you go for your remortgage review, though it is worth at least enquiring. Here at Scunthorpemoneyman, we offer a free remortgage review with an expert remortgage advisor in Scunthorpe.
What are the benefits of a remortgage review in Scunthorpe?
When you take up our offer of a free remortgage review a mortgage broker in Scunthorpe, your dedicated mortgage advisor in Scunthorpe will take on the bulk of the process, searching through 1000s of mortgage deals on your behalf, finding the right one for you.
If our mortgage advisors in Scunthorpe feel that a deal they have found will benefit your situation, they will present it to you. Once you are happy to proceed, we will progress to gathering documents and submitting your mortgage application.
For customers that prefer doing things on their own, you’ll find that comparison websites can help you find different deals, though you may not necessarily meet the mortgage lender criteria and there can be other costs that you have perhaps not factored in.
We have seen customers in the past, who have gotten in touch with us after previously switching onto a rate they saw online that had additional costs that they weren’t aware of, costing them a fortune. These can include set-up fees, early repayment charges and more.
Remember that whilst you can go directly to a mortgage lender, a mortgage broker in Scunthorpe will have much more to choose from with their vast panel of mortgage lenders. You will also, importantly, benefit from consumer protection.
Enquiring for remortgage advice in Scunthorpe from a mortgage broker in Scunthorpe can often be better for your situation. Mortgage lenders can only offer their own products, whereas a mortgage broker in Scunthorpe can cherry pick the best deal from multiple mortgage lenders.
Remortgaging and Early Repayment Charges
If you are currently tied into a specific mortgage deal and are looking to remortgage, unless your deal is set to end soon, you may need to pay a fee in order to do so. This is called an early repayment charge (ERC) and occurs when you move away from a loan too early.
Our trusted and dedicated mortgage advisors in Scunthorpe will take any ERC’s into account when assessing the benefits to you financially of taking out a remortgage. Of course it won’t always be appropriate, but there also may be times when it is.
Once your initial mortgage deal has concluded, you are likely to fall onto your mortgage lenders standard variable rate of interest (SVR). At this point (or in a few months prior to it), you probably won’t be paying an early repayment charge.
Your mortgage lenders SVR is typically much higher than your current fixed rate of interest and will track the Bank of England’s base rate, plus a percentage increase of their own. As such, it can be quite expensive to remain on this interest rate.
Remortgage Advice in Scunthorpe
We have a great deal of experience in the world of mortgages, helping customers to remortgage for over two decades now. Our team of remortgage advisors in Scunthorpe are only a phone call or booked appointment away, from helping you with remortgage advice in Scunthorpe.
Book a free mortgage appointment today and speak to an expert mortgage advisor in Scunthorpe. We look forward to hearing from you and helping you soon!
Product Transfer V Remortgage Advice in Scunthorpe
What is a product transfer?
When your introductory mortgage deal comes to an end your mortgage lender may offer you a new deal to stay with them, this is known as a product transfer.
Are you rewarded for being loyal?
Unfortunately, lenders do not always reward your loyalty and the offer they make you may not be competitive with deals you could get elsewhere. Even more annoyingly, these product transfer rates are not as good as the deal they offer new customers either!
Tempted by an online switch?
Whilst swapping to a new deal with your current Lender may well be fairly easy online, it is always in your interest to see what other deals you may be eligible for. Lenders will also tempt you to effect a new deal online without taking advice.
This can be really dangerous because if you do this without advice you are waving goodbye to all the valuable consumer protection you would otherwise have benefitted from.
You’ll be opting out of advice
We have seen numerous examples of customers effecting these “follow-on” deals and locking themselves in to an inappropriate deal. Because they opted out of advice then they have waived a lot of their rights in terms of making a complaint.
We did have a recent case where a customer who was pregnant did this and was declined for a small further advance to fund some necessary home improvements a few months later. She then had to pay a hefty early repayment charge to swap to a new lender who would grant her the additional funds.
Always, always, always get mortgage advice
If we think a product transfer is the most suitable deal for you we will recommend that as a course of action for you and if we arrange the mortgage for you as a mortgage broker then all the regulation and consumer protection will apply.
In short, even if your requirement seems straightforward we recommend you always take advice – a second opinion costs nothing and making a mistake when taking a new product can be costly.
The remortgage market is highly competitive and savings can generally be made by searching the market for a new deal. This is why approaching a Remortgage Advisor in Scunthorpe might be within your interests.
Get in touch for a free mortgage consultation today.,
