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The Real Reasons Why an Advisor will Get You a Better Remortgaging Deal

The answer is contingent on the circumstances you’re in and the amount of time you’re able to get it done. Here, we’ll offer some guidelines to help you determine the best route to take.

One thing is for certain. If you’re a homeowner with an outstanding mortgage on your home currently, it’s worth taking into consideration refinancing.

There are many reasons to believe that:

You have equity in your home
You’re not bound by an agreement that is fixed
Your term is coming to an end. your contract
You’re currently on the Standard Variable Rate (SVR)

(SVR is the default rate that the majority of fixes and trackers return to the rate at which the introductory offer ends.)

Why should you choose a mortgage advisor?

The reason is that the likelihood of an increase in interest rates are likely to occur by the end of 2018. In the meantime there is a chance that Bank of England is predicted to begin reducing some of the support it has given to the economy in the aftermath of the last year’s Brexit decision.

The second reason is that the interest rate is, for moment, at an historic low of 0.25 percent.

The third reason is that the deals on remortgaging are more attractive than they have been for over 10 years.

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Remortgaging Deals Best Ever

Most of us know that the mortgage is our largest expense. Therefore, reducing its costs will likely be the most significant money-saving opportunity.

The advantages of refinancing, for the majority of consumers, today, are substantial. There’s a lot of competition between lenders. Some are offering remortgaging options at a bargain price to convince customers to switch.

Do you have a mortgage advisor or DIY?

So , how do you proceed? If you decide to take out your own mortgage with no advice it’s known as an ‘execution-only’ application.

Online comparison of remortgages is a good place to begin to understand the general gist regarding the current market. But the specifics can confusing.

There has been a significant increase in the number of remortgages for brokered over the last three years since the launch of Financial Conduct Authority’s Mortgage Market Review in April 2014.

This means that lenders have to inquire more in-depth inquiries of their the borrowers. All of your expenses, from childcare costs, to travel expenses to your pension contribution has been considered in order to determine the financial viability of the loan.

Most of the time we suggest using the services of a mortgage advisor to find the best price.

Be aware that there are three kinds of mortgage advisors:

Some deal only with a particular leader
Some may offer discounts from a small number of lenders.
Other companies will be independent and cover the entire market

In terms of the loans that are that are available the lender that is fully market-based can provide greater options.

It’s not free to use. Remortgage brokers could cost clients fees for the services they provide. It will be an upfront cost or a percentage of the refinancing. Other lenders won’t charge. They’ll earn a percentage by the lending institution (and this amount is built in the final product).

Therefore, ask the questions. Remortgage advisers must inform you upfront what their services will cost or if they’re compensated commission.

Therefore, you’ll likely need to pay for a fee directly or have this added to your mortgage. In the end you’ll save thousands.

Some of the top reasons to work with an advisor to help you with your mortgage

1. You’re covered because they have a duty of care’ for you.

The advantage of seeking advice rather than conducting your own research This means that should the mortgage prove to be incompatible with your needs in the future, you’ll be granted greater rights when you file a claim. If their advice isn’t appropriate for the purpose, you’ll are paid.

2. The right product will be found for your needs.

A remortgage advisor, also called an independent mortgage broker is a professional with a deep understanding of the market. If you don’t use one, it could mean you’re stuck with the incorrect mortgage for your needs. This could result in a costly error that you’ll have to pay for.

3. You’ll be able to save time researching and wasting applications.

Remortgage advisers will examine various mortgage options that will be suitable for your needs. This means you won’t be denied by the lenders you select because you don’t know their terms or conditions. They usually handle your paperwork, too which means your application can go through quicker.

4. You’ll be able to purchase a product which you can actually be able to afford.

Remortgage advisers must conduct the necessary tests and scrutinize your finances to determine if that you have the funds to pay for the mortgage. They’ll only suggest the right remortgage product for your needs. They’ll also outline all charges and features to ensure you know exactly what you’ll be spending. It’s easy for you to get caught into confusion if you don’t know the charges and fees that are added on top of the list.