Thinking About Re-mortaging? Read These Tips First

More and more of use are signing up for limited time low interest rate mortgages

and then switching to a different mortgage when the low interest period expires.

It’s a great way to save money and can, potentially, save you thousands in

repayments. However, there are a few things you need to think about befoe you re-

mortgage.

Firstly, check there’s no early redemption penalty on your mortgage. These days

most early redemption penalties expire at the same time as the low interest rate

period, in which case there’s no problem. Make sure that if your mortgage has an

early redemption penalty that it does last beyond this period, otherwise it could cost

you a significant amount of money.

Secondly, remember to take into account any additional costs when you re-

mortgage. These could include an application fee for your new mortgage, legal fees,

a valuation fee, or a fee for paying off your existing mortgage early. You need to

include these fees in your calculations ehn you work out how much you’ll save.

Thirdly, consider taking financial advice from a qualified financial advisor. If you go

to one who charges a fee for there services rather than earning commission on

investment products, you can be sure of unbiased help. Even if you think you know

exactly what you’re doing, a financial advisor will often point out details that you

hadn’t considered.

Finally, make sure you read the terms and conditions of your new mortgage. It may

seem like a good deal but if it turns out to be less flexible in the long run then it

may end up costing you more than you save.

As long as you tread carefully, and get good advice, re-mortgaging is an excellent

way to save money on your mortgage.