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Learn how to save on your mortgage with our hints and tips for getting a better deal.
Following on from part 1, in part 2 we’ll show you how to get the best deals. So let’s crack on.
How to find a deal
There are a number of ways you can try to find the best remortgage deals and some things you can do to make yourself more attractive to mortgage lenders, the first being, make sure your credit file is in good condition.
1. Check your credit file and prepare yourself
One of the ways a mortgage lender will decide if they want to lend to you is by looking at your credit report and seeing if you’ve been a reliable payer in the past. This means paying your monthly instalments on time and in full (not just on your mortgage but on other commitments from loans to your mobile phone bill). Missing payments, making part payments or paying late will have a negative impact on your credit history, which will affect how other lenders view you. If this is you, don’t think that you won’t be able to get a mortgage deal at all! It’s just likely that the very best deals won’t be available to you. That’s okay though – you still might be able to save and get a better mortgage offer, it just depends what is available. And, these days there are, of course, some lenders who specialise in those with a poor credit history. At least if you know what your credit history is like, you’ll have some idea of how easy or hard it’s going to be to get a good deal.
2. Speak to your current lender
It’s probably best to start by finding out what your current mortgage lender is offering. If it’s your bank, arrange to go in and have a chat with them, they might be able to offer you a better rate because you’re an existing customer, and they know you, can see what money you have coming in and out of your account and whether you’ve paid on time each month.
3. Check comparison sites
These days you don’t have to rely on banks and brokers to look for remortgage deals – you can go and look for them yourself. Use a mortgage calculator like those that appear on numerous websites, like USwitch for instance. They have a calculator that allows you to enter your details, including property value, how much you want to borrow, and what period you’d like to repay over, as well as what kind of mortgage you want to take – fixed, variable or tracker and interest only or capital and interest (repayment).
They also show you the minimum requirements to get the deals they offer in a drop down list, so you can see if you meet the basic requirements and whether you could apply. Of course, this is just a first step and there’s no guarantee that you’ll get the best mortgage deal you see, but it’s useful to give you an idea of what might be available.
Another way you could look for a cheaper deal on your mortgage is by taking advice from a mortgage broker. They are able to find you the best deals for you from a range of lenders as well as having access to special broker-only offers. Brokers must find you the best deal for your circumstance and they have to justify why they believe that to be the case.
If you’ve nearly paid off most of your mortgage, it’s probably not worth you switching to a better deal now. However, when you’ve paid your mortgage off, think how much more money you’ll have each month – it will definitely be easier to manage your budgeting!
Has it made you think? If you want advice on whether you should consider remortgaging, we’d always advise consulting an expert before you decide on anything.
by Christine WalshBack to blog home