Paying off a mortgage can last a long time. But you don’t actually have to stick with the same mortgage. Sometimes, circumstances may change, and a remortgage would be a better option. But before you decide to remortgage, it’s best to be aware of these common remortgaging mistakes.
1. Starting the Remortgage Process Too Late
When considering a remortgage, it might seem like a very simple procedure and much like your original mortgage application. However, before you can even think about remortgaging, you need to check your finances.
You’ll not only have to have been in your house for around two years, but your credit history needs to be a healthy one as well. This is because remortgaging is a complex deal which requires a lot more work than your original mortgage application.
If you don’t have a good credit history, you probably haven’t been managing your finances very well. To get a good deal remortgaging, you’ll need to start getting yourself into the habit of paying back bills on time and keeping on top of those monthly credit card bills.
This way, you’ll be able to get a good credit rating to help you get a good deal and the lowest interest rate for your new mortgage.
2. Failing to Seek Professional Advice
Your remortgage is more than just a simple case of applying for the same mortgage loan that you had before. If you go through with the remortgaging process, you’ll have a completely new contract.
This means that your monthly payments will change, and there could be an increase or a decrease in monthly costs. And this is where you need to start thinking about whether remortgaging really is the best option for you.
As well as that, you need to consider whether you can afford to remortgage in the first place.
You should always consider the pros and cons of remortgaging and then seek professional advice. You can either talk it through with your mortgage adviser or financial adviser.
But if you’re interested in remortgaging and you want to find a deal that will save you some money, a specialist remortgaging broker could be the best option.
3. Extending the Mortgage Term
When it comes to repayment, you need to make sure that you’ve got a repayment plan that works for you. You should never forget about your mortgage, and you should never try to extend the term length of the mortgage.
This is one of the biggest remortgaging mistakes, and it’s one that can easily be avoided. As long as you’ve got enough money put aside for your mortgage payments, then you should always stick to the monthly payments that you and your mortgage lender agreed upon.
This way, you’ll avoid a default notice, and you’ll also be able to keep on top of any financial or personal struggles that come up. You should also keep an eye on your credit score. If you notice any negative changes, you should seek to rectify the situation before it gets any worse.
Final Thoughts
Although remortgaging can be a good way to secure a better mortgage deal and save yourself some money, it’s not always the best option. In some circumstances, you might not want to remortgage, and you may want to just stick to the same loan that you had before. But if you do decide to remortgage, make sure that you don’t make any of these common remortgaging mistakes.
Figure out whether remortgaging is the best option for you with the help of A Move Brokers. We are mortgage advisors in Chester that offer a wide range of mortgage products and can help you get the best deal to suit your individual needs. Get in touch with us today!
This article is for information only and should not be seen as advice or a recommendation to act. As a mortgage is secured against your home or property, it may be repossessed if you do not keep up the mortgage repayments.