Finding the right remortgage can be tough. Not only do you want to take advantage of a great interest rate but you may also want to fix your payments. You may also want to borrow additional funds to consolidate debts or undertake some home improvements. And, you may want to benefit from an offset facility or from greater payment flexibility.
Whilst saving money may be your primary concern when remortgaging, it is important that you consider the costs of the remortgage process as well as the savings you may make in terms of your monthly repayments. Sometimes a great deal may have hidden fees which can make it less appealing. If you are thinking of remortgaging, ensure that you check to see whether any of the following five fees will be payable.
Valuation/Survey Fee: When you apply for a remortgage, one of the first things that a lender will do is to instruct a qualified surveyor to undertake a valuation on your home. The surveyor wants to check that there are no structural issues with your home as well as providing a realistic market valuation of your property.
They will charge a fee for the valuation, and the fees can vary depending on how much your home is worth and how detailed the valuation report it. Sometimes a lender will offer a free valuation, but if you want a more in depth report you might have to cover some of the cost of this yourself. A basic valuation is usually all that is required however.
Application Fees: When you are taking out a mortgage, you will usually have to pay an application fee to cover administration costs of processing your application. Even if the interest rate is lower, you will need to check the application fee as this may increase the overall cost of the mortgage as it can be as much as £2000 on some mortgages.
Booking fees are typically payable with your remortgage application and will often be non-refundable (if your remortgage application is subsequently declined). Application or arrangement fees can often be added to your new mortgage and are only payable when the remortgage completes.
Solicitors Fees: Remortgage lenders will typically employ their own approved solicitors to undertake the legal work involved in the remortgage process. And, they will often meet the costs of these fees. However, if there is any additional work that needs carrying out - a transfer of title, for example - you are likely to have to pay for this work yourself.
Mortgage Broker Fees: Using a mortgage broker, as many people do, has its benefits. They can often find you great rates and great products as they often have access to a wide range of deals. They can also help with the paperwork involved during the application process. Mortgage brokers in the main though will charge for these services and these charges should be taken into account.
Early Repayment Penalties: If you are still within the first few years of a fixed rate mortgage, you may have to pay an early repayment charge. If you are unsure just ask your current lender if there is any charge.
You'll need to weigh up whether the charge is worth paying, as you may be able to get a deal with lower interest rates and no application fee in which case it may be worth it, but do your maths before agreeing to this.
Whilst saving money may be your primary concern when remortgaging, it is important that you consider the costs of the remortgage process as well as the savings you may make in terms of your monthly repayments. Sometimes a great deal may have hidden fees which can make it less appealing. If you are thinking of remortgaging, ensure that you check to see whether any of the following five fees will be payable.
Valuation/Survey Fee: When you apply for a remortgage, one of the first things that a lender will do is to instruct a qualified surveyor to undertake a valuation on your home. The surveyor wants to check that there are no structural issues with your home as well as providing a realistic market valuation of your property.
They will charge a fee for the valuation, and the fees can vary depending on how much your home is worth and how detailed the valuation report it. Sometimes a lender will offer a free valuation, but if you want a more in depth report you might have to cover some of the cost of this yourself. A basic valuation is usually all that is required however.
Application Fees: When you are taking out a mortgage, you will usually have to pay an application fee to cover administration costs of processing your application. Even if the interest rate is lower, you will need to check the application fee as this may increase the overall cost of the mortgage as it can be as much as £2000 on some mortgages.
Booking fees are typically payable with your remortgage application and will often be non-refundable (if your remortgage application is subsequently declined). Application or arrangement fees can often be added to your new mortgage and are only payable when the remortgage completes.
Solicitors Fees: Remortgage lenders will typically employ their own approved solicitors to undertake the legal work involved in the remortgage process. And, they will often meet the costs of these fees. However, if there is any additional work that needs carrying out - a transfer of title, for example - you are likely to have to pay for this work yourself.
Mortgage Broker Fees: Using a mortgage broker, as many people do, has its benefits. They can often find you great rates and great products as they often have access to a wide range of deals. They can also help with the paperwork involved during the application process. Mortgage brokers in the main though will charge for these services and these charges should be taken into account.
Early Repayment Penalties: If you are still within the first few years of a fixed rate mortgage, you may have to pay an early repayment charge. If you are unsure just ask your current lender if there is any charge.
You'll need to weigh up whether the charge is worth paying, as you may be able to get a deal with lower interest rates and no application fee in which case it may be worth it, but do your maths before agreeing to this.
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