Mortgages UK presents the very latest information on Remortgages

It’s a very competitive business in the mortgage world and as a result mortgage providers are forcefully trying to entice borrowers away from their current lender. This is known as remortgaging.

The general term of taking out a remortgage implies the switching of your existing mortgage to a new agreement, usually with a new mortgage provider. Millions of borrowers during the term of their mortgage pay the standard variable rate (SVR), which is by no means the best offer the mortgage lender could provide. There is no reason why the borrower can’t change to a lower rate or more suitable deal from the SVR. However, if the borrower has just come from a fixed or discounted rate, which does usually incur a penalty for doing so, the savings may well be substantial.

Therefore, if it seems like you are paying too much money with your current mortgage provider then following the advice below on how to remortgage your property.

1) Find out if your existing mortgage lender will charge you a redemption fee if you choose to settle your loan early. If this proves to be the case then this has to be taken into consideration when calculating the potential savings you might make. If the penalty is too high for your liking then investigate the possibility of adding more to your monthly payment, a possibility if your mortgage is flexible, to save thousands of pounds in interest payments and remove years from the duration of your mortgage.

2) Do as much research as possible to make sure you find the best deal available. If you are unable to secure a rate that is at least 1% lower than what you are currently paying then it is not worth doing.

3) An alternate avenue you could choose to take is to contact a mortgage broker who can source and present you a selection of current offers from numerous lenders. It is vital that this broker is independent of any institutions so that he has access to the entire mortgage market.

4) Consider an "offset mortgage" in which your mortgage is associated with your savings account. The procedure involves the bank or building society deducting the money you have invested in your savings account from the debt imposed by your mortgage.

5) Use the internet to locate virtual banks. Many online lenders offer very low interest rates and have exceptionally good mortgage deals. As their overheads are minimal due to them being completely internet-based they should prove to beat many offers that can be found on the high street.

All of these steps take time, but can pay large dividends in the end over the life of your mortgage. If you find that you do not have the time to search the mortgage market yourself, and would like the benefit of having an expert weigh up your options, then use our mortgage enquiry service.