What to think about if you’re coming to the end of your current mortgage deal?

Published on 23 October 2019

When you come to the end of the special deal period on your mortgage, its worthwhile looking to the market to see what else is currently on offer. Many lenders are keen to attract new borrowers with a large amount of equity in their homes, and who are able to demonstrate a good payment history.

Re-mortgaging can be a good way to escape high variable interest rates and take advantage of some of the current fixed-rate, tracker or discount mortgages, which may well have lower rates.

It can also be a way to raise some funds for an expensive purchase. If you have owned your property for a few years, it could be worth significantly more than your outstanding mortgage. By taking out a new, larger mortgage you can release some additional funds to spend as you wish.

Some care is required as re-mortgaging could cost you some additional outlay, and before applying for a new deal you need to check how expensive it is going to be.

The following are some of the areas that you should consider:

  • Arrangement and administration fees for the new mortgage - These can vary considerably from lender to lender so it is well worth shopping around.
  • A mortgage valuation may well be required - The type of valuation needed will depend on a number of factors and your new lender may well include this free of charge as part of the new deal.
  • Check if you have an early redemption penalty/charge on your current mortgage - This could be a considerable amount if you pay the mortgage off in full within a certain period of the start date.
  • Legal costs - Again your new lender may pay any standard charges as part of the package, but it is worth checking this to ensure that you will not be liable for any additional costs.

If you’re coming to the end of your current deal and you want to talk through your options, book some time in with a mortgage advisor. A good one will talk you through each step.

Here at The Cumberland, we offer a hassle-free re-mortgage service and can help in a range of ways:

✔ We offer a range of competitive products;
✔ Our team of expert underwriters will look at your individual, specific circumstances;
✔ You can speak to our team about your application 7 days a week, up to 8pm weekdays.

Click to visit our re-mortgage webpage or book your appointment online.