I'm coming to the end of my fixed rate mortgage. How do I remortgage and how do I find the best deal?
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Ian says: When I meet a new client for the first time to arrange a mortgage, I always have the conversation with them “What happens at the end of my fixed rate/tracker rate deal?” because normally the deals we arrange are for a set period of time from 2 years up to 10 years or beyond sometimes.
The reason people don’t tie themselves in for too long is because there are various reasons why we would want to remortgage in a few years time. It could be for a better interest rate, home improvements, debt consolidation, starting a family, getting married or releasing equity to buy another property. Whatever the reason most people like to have their options open to them every few years.
Remortgaging should not cost you anything so the conveyancing and the survey should be part of the new deal. When clients come to see me I always look at the existing lender to see what they will offer the client and then what else is available that way you get a balanced opinion of what is best for you. This makes sure you get the best deal available to you at the time.
I also like to see if we can look at the term of the mortgage. If you took your mortgage over 25 years and it was a two year deal then of course we put the new mortgage to 23 years but if your circumstances have changed for instance your earning more money or you’ve come into some money, then I look to reduce the term of your mortgage.
The main thing is if you do a have short term deal make sure you are willing to spend the time to look at the next deal rather just having the interest rate your existing lender wants to give you. By coming to see me I will give you all the options available to you and will make the process as simple as possible.
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