Plan your remortgage now to cut costs

More than £26 billion worth of mortgage deals will come to an end in October, according to research by Yorkshire Building Society, the largest monthly amount of mortgages maturing this year. Current competitive mortgage rates mean that if your deal is due to finish this autumn, you may well be able to make significant savings when you remortgage. Property values have risen in many areas of the country over the past few years, which means many homeowners, especially those coming to the end of a five-year fixed rate deal, may find they now have a greater proportion of equity in their homes. The more equity you have, or the larger the deposit you’re able to put down if you’re buying, the wider the choice of mortgages at lower rates you’ll have to choose from.Act now!
Homeowners who are approaching the end of their current deals shouldn’t wait until October to get the remortgage ball rolling. You can start looking for a cheaper deal now if you want to take advantage of today’s low rates, as many remortgage offers are valid for between three and six months from the date they’re issued. The advantage of doing this in advance is that you can transfer straight across to your new deal when your current one comes to an end, without having to move onto your lender’s Standard Variable Rate (SVR). These tend to be higher rates, so by switching straight to a new deal you will avoid paying more than you need to. It’s worth checking with your existing lender to see what they can offer first, but make sure you shop around with other lenders as well so that you can be certain you’ve found the best possible deal to suit your needs. Remember that you shouldn’t base your remortgage decision on the headline mortgage rate alone. You’ll need to factor in arrangement fees as these can significantly bump up the overall cost of any deal. The good news is that many lenders offer free legal fees or valuations for remortgages, which can help keep costs down.