6 Things to consider when remortgaging your home in 2024

If you’re coming to the end of your fixed mortgage term, you want to make sure that you’re getting the right deal for your next mortgage term. With rising mortgage rates and even service charges, thinking ahead is the best way to get the best deal for you. In this blog post, we list a few things to consider when remortgaging your home in 2024.

1. Get A Property Evaluation

One of the first steps to take when looking at remortgage rates is getting a realistic property evaluation for your home. There are various ways to do this. Some people reach out to an estate agent to value their property. Depending on the type of estate agent, they may or may not want to give you an evaluation if you have no immediate plans to sell your house, but it’s worth a try.

Alternatively, you could do some of your own online research to see what other properties in your area are going for price-wise and make a calculated guess based on that. Whatever route you choose to take in getting a property evaluation, it has to be a realistic figure because when you eventually get to your mortgage lender, they will get an independent valuer to provide a property valuation figure.

So, to avoid getting caught out when this happens, ensure you get a property valuation that you are fairly confident with.

2. Choose An Independent Mortgage Broker

Choosing the right qualified mortgage broker can make or break your chances of getting the best remortgage deal. A mortgage broker helps you arrange a mortgage between you and a mortgage lender.

However, ensuring you get a qualified independent mortgage broker means you can trust that the deals they are showing you are without bias to a particular lender. An independent qualified mortgage means you can be more confident that they are really looking for the best deal for you, as opposed to the lender.

3. Check Your Credit Score

It’s important to know the health of your finances before you lock into a remortgage deal or before a mortgage lender finds out your credit score. The reason this is important is that for you to get a good remortgage deal, lenders will need to be convinced that you will be able to meet mortgage payments on time.

One way to monitor your credit score as you approach the time to remortgage is to search your credit reports to see if you have a good repayment history. Various agencies offer this service, mainly Experian, Equifax, and TransUnion.

4. Wisely Choose Your Remortgage Date

The exact date you choose to remortgage your property can have significant consequences. This is because many mortgages will charge you if you leave your current deal early. So, to avoid getting this early repayment charge, carefully review your current mortgage terms to see if it applies to you.

Typically, the fee is up to 5% of the outstanding mortgage balance, which can cost thousands of pounds. If your mortgage term has an early repayment charge, you should remortgage the next working day after your current mortgage ends to avoid penalties.

If your current mortgage terms have early repayment penalties and you still want to remortgage before the term ends, analyse the penalty you have to pay and consider whether it is financially viable.

However, the best-case scenario is if your current mortgage term does not have an early repayment charge. In this situation, you can choose whichever remortgage date you want.

5. Check The Remainder Of Your Current Mortgage

Getting the exact figure you will owe when remortgaging is essential to getting the right deal for you. If you guess, it could lead you to end up getting a more expensive deal.

So, when you know you are considering remortgaging, ask your current lender how much you will need to pay to clear the mortgage on, for example, x date. Then, give the date you plan to remortgage and end your current mortgage term.

By giving them the exact date, you help your lender calculate a more precise figure. The lender should consider any repayments you have remaining before that date.

6. Product Transfer

Instead of shopping for another deal, doing a product transfer allows you to stay with your current lender and select a new mortgage, usually on a fixed rate. Since it is with your existing lender, it’s usually a smooth process with little to no paperwork. 

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