In reference to remortgages there are many questions. In the following, we will try to answer your questions.

Which kind of remortgage products exist? There are capped rates, fixed rates, discounts, flexible rates, Base Rate trackers. Capped rates offer the best rate, and you agree on the sum of interest which you will pay over a period of time. If the variable rate goes up higher than the capped rate which you have agreed to then you pay up to the capped rate, but if it falls then you pay automatically less. You know your maximum limit!

Before you choose a type of remortgage, you need to know all the details and how long you will pay the rates. Can you save anything on the mortgage rate? If you increase your mortgage at the same time that you get a remortgage, you can’t save any money. Your broker must draw attention to the repayments and savings.

The mortgage will revert to a standard variable rate. What is this preciously? When the mortgage ends, you have to pay the lender’s SVR, mostly in cases of discount, fixed or capped rates. This is a variable rate, which means that it jumps over time.  Comparing to the lender’s rate will give you a view about the lender’s financial situation.

Your brokers will show you the monthly repayments and they will note how much SVR you will have to pay. You can also use a mortgage calculator to compute this amount.

What is APR? The annual percentage rate reflects on the actual loan and helps to compare to other details. It is unreliable as well. In the case of fixed rates and discounts lenders apply for ERC’s. They are calculated every month and can approach thousands of pounds. If you pay off your mortgage early you may be charged.

If you remortgage, the average product fee is around £1000. Nowadays due to the financial situation, debt problems have increased and the remortgaging system has changed. Previously some lenders have approved special remortgage packages which didn’t include fees, but at this time nobody does.

The remortgage process may take from a few days to some weeks. Your broker must give an idea about the time sheets which you have to know.  You can apply for remortgage as many times as you want, but pay attention to ERC and save you money!