We often see how people make incorrect decisions at the time of remortgaging their homes. To make sure that you don’t make any such mistakes, we thought of sharing more information about few important things that you must be aware of at the time of remortgaging the house. If you can pay attention to all these factors, you can easily overcome the frustrating situations you may have to face at the time of remortgaging your home.
Keep in mind that some of the things we list in this article may be different due to the global pandemic we’re facing at the moment. In all honestly, every person feels like the world is on pause at the moment because of the recent 2023 events. However, that shouldn’t discourage you from getting things done, especially not when your property is in question.
With that being said, let’s take a look at all of these things that matter when remortgaging comes into mind.
1. Understand the value of your home
Even though the house prices are rising, you will need to get an accurate picture of the value associated with your house. You can get to know about the value of your house by seeking the assistance of a couple of real estate agents. You can ask them to value your property. If your property is worthy, the lower to the loan to value would be the remortgage. In other words, it represents the percentage value that you purchase. If the LTV is low, you will also be able to secure a lower interest.
The value of your home can be determined in a few different ways. You can either do it on your own, but you’ll still need a person with a license to confirm it, or you can hire a professional right away to come and finish that task for you. But, as we mentioned above, we recommend hiring a real estate agent right away. After all, they’re the ones with the most experience.
2. You don’t have to stick to the same mortgage provider
At the time of remortgaging your house, you need to understand that there is no need to stick to the existing mortgage provider. Instead, you can go for a new one. Loyalty will not be able to deliver any prominent benefits to you. In fact, you might even end up spending more money out of your pocket due to loyalty.
One of the best things in a situation like this is the fact you don’t have to choose the same provider due to something you’ve signed on a paper unless you really did, but that’s a rare scenario. If you notice that some mortgage provider has better things to offer, feel free to go with them this second time. You’re basically not losing anything by doing this, and in the best-case scenario, you will even save something.
3. Be mindful of the fees
You shouldn’t worry too much about the rate of interest while you are comparing the different deals available to remortgage your house from homebuyerconveyancing.com. It is true that the mortgage rate is important. However, you must also take a look at the fees. That’s because the fees associated with some of the lenders who offer low-interest rates are high. Hence, you should take fees into consideration and learn how to secure the best deal.
In the category of fees, we also include the cost for a professional mortgage lawyer, or a property attorney, whatever you like to call it. We also suggest hiring someone like this in the first place if you ever think about remortgaging your home. There are so many unexpected issues that you can avoid by having such an experienced professional by your side. Both for reviewing documents and the rest of the procedure.
4. Be mindful of the small differences in the interest rates
When your existing lender is offering an interest rate of 1.4%, a new lender will provide you with an interest rate of 1.3%. In such a situation, you might not think about moving to another lender because you will feel that it is not worth the trouble. But it will help you to save a considerable amount of money after a couple of years. Hence, you should never ignore such small differences in the interest rates.
Although on paper these sums don’t look like much, sometimes one percent or even a half percent difference can mean paying thousands of dollars more. Of course, this depends on the value of your property, but if you’re working with something more expensive, it definitely applies.
5. Always get independent advice
If you come across the need to seek the assistance of an expert, make sure that you are going for independent advice. This is where an independent property lawyer can help you with. It will assist you to get unbiased advice, which can save you from trouble.
If you can keep these 5 things in mind at the time of remortgaging your house, you will be able to stay away from many struggles.
We know that at first hiring a professional property advisor, a real estate agent, or even a mortgage lawyer seems like “a costly investment”, but your opinion will change on that once you get more familiar with the procedure. There are a lot of complicated things regarding all the paperwork, and if you are an inexperienced individual, all this can be very overwhelming for you.
Besides, you can even get tricked into signing something that doesn’t work out for you as well as you thought. At the end of the day, you’ll realize it’s much easier to have someone who can advise you by your side. It’s a small price to pay for all the advantages you get.
It’s not an easy task remortgaging your home on your own, especially if you are inexperienced with the entire procedure. On top of all this, the entire situation became a bit trickier with the pandemic. But, we have the information you need for all of your questions. Take a look at the content above.