How to search for the best remortgage?

As there are hundreds of different mortgage deals available, it is important that you compare like for like. There are several ways to shop around to look for the best remortgage deal...

• Online- this is a great way to compare rates
• Newspapers- best buy tables
• Broker- can do all the shopping around for you
• High Street- Many High Street Lenders will offer their best rates if you go to them directly

When comparing deals always check what the repayment term is. The monthly repayments for a loan over 20 years will obviously be cheaper than the repayments for a loan taken over 15 year term. The same applies to the method of repayment for the loan. A mortgage which is investment or interest only, will be much cheaper than a repayment mortgage.

When looking at deals offered by Lenders, you will notice that they mention a Loan to Value ratio (LTV). This is the amount of loan they are willing to lend on a property, compared to its value. For example: Suppose your house is valued at £200,000 and the mortgage you require is £100,000, your LTV would be 50%. People with LTV rates of 60% or less will be able to shop around and compare some of the lowest rates around, whereas those people with a LTV rate of 75% or more will find that there are not very many deals available to them.

The deal may offer cash back or free surveys etc, these are all great, but are you paying a higher interest rate to cover the cost of these freebies?

Think about whether these promotional deals are worth their while. When looking at the deals best suited for your needs always remember....

Key Points	Comments
Compare Like for like	Compare similar repayment types Compare similar repayment terms
Know your LTV ratio	Ensure that the rate that is shown is available to you, based on your LTV
Check the costs	What are your initial fees? Are there any penalties?

 

Download the Remortgage PDF Guide here - see our other free PDF guides here

Guide Contents

What are remortgages?
What will the remortgage costs be?
How to search for the best remortgage?
Found your remortgage deal? Fill out the remortgage application
Remortgaging FAQ’s
Where can I get more remortgage help?
Remortgage Advice - Useful Terms

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