Compare Remortgage Rates to Get the Best Remortgage Rates and Save Money
For most people, their home is the most expensive thing they own. If you could save money on those monthly payments, why would you ever pass up that opportunity? Finding low remortgage rates may just be that ticket to savings.
Our guide will help you find the best remortgage rates to either save you money on your monthly payment or allow you to borrow against your home for extra money.
If you want to end up with the cheapest remortgage rates, read on as we:
- Explain what remortgage rates are
- Tell you who may benefit from the best mortgage rates for remortgage
- Tell you who will not benefit from even the lowest remortgage rates
- Suggest 7 steps to compare remortgage rates
A remortgage will only save you money if you find the best rates for remortgage through a detailed remortgage rates comparison.
Though this will take some time and patience, our steps will help you sail through the process in order to make this the year you find the best remortgage rate for you.
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What Is Remortgaging Your Home?
Before we show you how to compare remortgage rates to find the best remortgage rate for you, it is important to explain just what remortgaging is.
Essentially, a remortgage is replacing your current mortgage with a brand new mortgage. You are cancelling this first home loan with another.
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There is no moving involved here; finding the best remortgage rates is about saving money in the house you already live in, or about borrowing money against your home for things like improvements.
Refinancing is another word for this activity. Often, “remortgaging” is used in the U.K., and “refinancing” is used in the U.S.
Why Search for the Best Remortgage Rates?
So why do people even go on the hunt for the lowest remortgage rates? There are many reasons people may choose to remortgage:
- Lower remortgage rates lead to lower monthly payments.
- You are looking for a fixed-rate remortgage instead of a variable rate (the best fixed-rate remortgage may actually cost a little more upfront, but it is far more secure than a variable rate).
- You are looking for extra money (often for home improvements).
- You are looking for a new remortgage rate since your home value has increased.
- You are looking for more flexibility (example: you want to add extra payments when you can afford them).
No matter what your specific reason may be for finding the best rates for remortgage, the ultimate goal is to save money.
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When You Should Not Search for Remortgage Rates
Remember that not every single remortgage will save you money. The goal is to get a lower remortgage rate than your original mortgage rate and/or switch from a variable to a fixed rate remortgage — and to do this all without racking up too many fees.
If even the best remortgage rates are the same or more than your current mortgage, this process is not for you.
MoneySavingExpert.Com offers a list of the types of people who will not benefit from a remortgage, even with the lowest remortgage rates:
- Those who have little mortgage debt
- Those whose income has lowered
- Those whose home value has dropped
- Those with little equity
- Those with credit problems after the first mortgage
- Those who already have some of the best remortgage rates
How to Find the Best Remortgage Rates
Now it is time to figure out how to compare remortgage rates in order to get the lowest remortgage rates possible.
To make the process of searching for the lowest remortgage rates simple, we have created a list of seven basic steps below.
- Get your paperwork in order
- Talk to your current lender first
- Compare remortgage rates with various lenders
- Compare loan types
- Compare remortgage rates fees
- Boost your credit score
- Get help from an advisor
Get Your Paperwork in Order
Before you compare remortgage rates, before you even firmly decide to search for remortgage rates, it is best to take a thorough look at your finances.
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The best way to do this is to get all your paperwork out and in order (or look through your spreadsheets or finance software). Gather all the information on your:
- Current mortgage
- Bank statements
- Credit card information
- Debt
- Savings
- Budget
Also, consider getting a credit report to know exactly where you stand (this will be important for step #6).
Then, you can see exactly what your financial situation looks like. Not only will you know whether or not searching for the best remortgage rates is right for you, you will also have your ducks in a row when it comes time to deal with the lenders.
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Talk to Your Current Lender About Their Lowest Remortgage Rates First
If you are looking for the lowest remortgage rates, talk with your current lender before you compare remortgage rates with other companies.
This is a good idea for two reasons:
- Your current lender will want to keep your business, so they may be able to work out a good deal for the best remortgage rates.
- Their offer will give you a good place to start as you compare remortgage rates among other lenders; you will have a better idea whether the other remortgage rate offers are high or low.
Even if you feel your current lender is offering the best mortgage rates for remortgage you can find, still follow the following steps to make sure.
Compare Remortgage Rates with Many Lenders
Now it is time to compare remortgage rates among all lenders. You will want to talk to as many lenders as you can to ensure you are getting the lowest remortgage rates.
Talk to the biggest companies about what they offer in terms of best mortgage rates for remortgage; then, try the smallest companies to see what they offer as the best rates for remortgage.
Get quotes online (through various remortgage rates comparison sites since they may give different quotes), but also try to call and speak to a representative to get an exact idea of what you would pay with your current financial situation.
If you are truly holding out for the best remortgage rates, you will have to be patient with the remortgage rates comparison process.
Comparison Shop Your Loan Options
Shopping for lenders is not the only remortgage rates comparison you will have to do to get the best remortgage rates. You should also compare the different loan types that are out there.
- One of the common loan choices you will encounter is getting the best fixed-rate remortgage vs. the best variable remortgage rate. A fixed-rate remortgage may cost a little more per month, but a variable remortgage rate does not offer any form of security. Getting the best fixed-rate remortgage is a common reason people remortgage.
- You should also consider the length of your remortgage when looking for the lowest remortgage rates. You will have small monthly payments and the cheapest remortgage rates for a longer loan, but you will likely end up paying much more in interest over the life of the loan.
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Compare Remortgage Rates Fees
Sometimes the high price of fees will cancel out the savings from even the best remortgage rates. You need to take fees into consideration before even deciding if this is the right choice for you.
If you do learn that the savings you will get from getting the lowest remortgage rates is worth the fees, you will still need to compare remortgage rates fees from lender to lender.
Take this into account when doing a lender remortgage rates comparison and when doing a loan type remortgage rates comparison.
One lender may technically have the cheapest remortgage rates but also some of the highest fees. You may do better finding a lender that has higher remortgage rates but saves you significantly on fees.
Take the time to do the math.
Boost Your Credit Score
Up to this point, our steps for getting the best mortgage rates for remortgage has had everything to do with what lenders offer or what loan type you choose. This next tip for the lowest remortgage rates, boosting your credit score, is entirely in your hands.
The better your credit score is, the better your remortgage rate.
This is because any lender takes a risk by offering you a loan of such high value. If you have shown a history of consistent and timely repayment, they consider that loan less of a risk.
To reward that behavior and attract you to their company, they offer the best remortgage rates for those with good or excellent credit.
If your credit is not good enough to the best remortgage rate right now, do the following:
- Pay down your current debt, but don’t close your credit card.
- Never miss any payments; set alarms and reminders if you need to.
- Do not open extra lines of credit right before you compare remortgage rates.
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Find an Advisor/Broker to Help Find Your Best Remortgage Rate
This final tip for finding the best remortgage rates has pros and cons attached to it.
Choosing an advisor or broker to help you compare remortgage rates can be beneficial to you because they understand the market. They know what to expect; they know where to find the lowest remortgage rates.
However, when an advisor or broker gets a kickback for signing up clients to a particular lender or loan, they may find the best mortgage rates for remortgage for themselves, not for you.
If you do choose to learn from the expertise of an advisor when it comes to getting the best rates for remortgage, find somebody who is not tied to only one option. Find somebody who can be more invested in getting you the cheapest remortgage rates.
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Conclusion – Getting The Best Remortgage Rates
Now that you have a better idea of how to compare remortgage rates to find the ideal remortgage rate for you, all you have to do is take the plunge.
Start organizing your paperwork and begin the process of searching for the right lender for you.
Take your time as you do your remortgage rates comparison. This way you can be confident that you have found the lowest remortgage rates with the lowest fees that will save you money.
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