It’s possible to refinance with your existing mortgage lender or switch to an entirely new one – but there are implications to remortgaging during a fixed-rate term to be aware of before jumping full steam ahead. The early repayment charge (ERC) for leaving a fixed rate early can be significant so it’s worth comparing the savings you’re set to make by remortgaging vs the fees you’ll be hit with for leaving early. A Countrywide Mortgage Services Consultant can help advise on the best option for you.
As you probably know, one of the main consequences is having to pay fees for leaving your existing deal early. There are several charges that you might be liable for and you need to factor these into your decision:
Be sure to find out whether any of these fees might apply before you go ahead with a remortgage so you can factor them into your overall cost. A Countrywide Mortgage Services Consultant based in our branches can make sure you’re aware of every potential cost involved and help you keep these charges to a minimum by matching you with a mortgage lender who waives certain fees as an incentive. They have access to thousands of mortgage products to compare – so it’s worth having a chat to see how they can help.
When you remortgage, there are some things you can do to scope out the best deal. It’s always worth working with a mortgage professional who has access to a wide range of products rather than a limited selection through your existing lender. You can start by checking and improving your credit rating. Early exit fees, as well as legal and valuation fees on a remortgage can sometimes offset what looks like a great low interest rate – so to find the best remortgage deal, you have to factor these in. And if you’re borrowing a lower percentage of the property’s value then you can access some cheaper deals.
There’s no simple answer to this question. You can theoretically remortgage anytime but, to avoid being hit with early repayment charges, people tend to look at remortgaging towards the end of their existing mortgage rate. Many lenders’ mortgage offers last between 3 and 6 months from the date they’re issued, which means you can start shopping and get your application in on a deal you like. This would then secure the rate and result in a formal offer that would be valid when the existing rate comes to an end. Offers vary from lender to lender so it is worth speaking to a Mortgage Consultant to provide a personalised illustration.
You might still be able to remortgage with a poor credit rating, but you probably won’t have access to the very best deals. A starting point would be to improve your credit rating and have a conversation with a Countrywide Mortgage Services Consultant who will be able to lay out your next steps.
Here are the steps to take if you want to remortgage during a fixed-rate term…
Speak to your mortgage lender or check your paperwork to find out whether your current deal has exit fees. Most do, but you should find out exactly how much you’ll need to pay so it can be factored into the overall cost.
Our associated company Countrywide Mortgage Services will offer you advice throughout the remortgage process and will start by making sure you’re aware of the implications of refinancing early. They will also search through a panel of high-street lenders to track down the best deal that you qualify for, one that will leave you better off financially with any exit fees and other charges factored in. Remember, the best mortgage you qualify for might only be available through a lender you’ve never heard of, or a mortgage provider who is only approachable through us!
This will help our mortgage professionals find the most relevant deals for you, to suit your particular situation. At times, Countrywide Mortgage Services may even have access to exclusive products which you can’t get anywhere else, including going direct to the lender.
Refinancing a rental property can make your mortgage more manageable or give you the cash you need to improve your tenant’s space. It can even help you to put down a deposit on a new property. In essence, you’re cashing in on the increase in your property’s value. Investors will buy a property – often below market value, then they’ll add value and refinance and hopefully recycle their money back out. If you’re an investor and considering this strategy, it’s worth speaking to a property professional who can discuss your next steps…
Correct at the time of publishing 21/03/2023
ALL MORTGAGES ARE SUBJECT TO STATUS AND LENDER CRITERIA. MOST BUY TO LET MORTGAGES ARE NOT REGULATED.
A BROKER FEE MAY BE PAYABLE ON APPLICATION, OUR TYPICAL FEE IS £599. IN ADDITION, AN ADMINISTRATION FEE OF £99 MAY ALSO APPLY FOR RESIDENTIAL CUSTOMERS OR £149 FOR BUY TO LET CUSTOMERS.
YOUR HOME OR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE. YOU MAY HAVE TO PAY AN EARLY REPAYMENT CHARGE TO YOUR EXISTING LENDER IF YOU RE-MORTGAGE.
Countrywide Mortgage Services and Countrywide Insurance Services are trading names of Connells Group Principal Services Ltd which is authorised and regulated by the Financial Conduct Authority (Firm Registration Number 301684). Registered Office: Witan Gate House, 500–600 Witan Gate West, Milton Keynes, MK9 1GF. Registered in England no. 01707341. MS/CW/6099/05.22
