Looking for remortgage deals UK style? At the present time, there are many people in the UK looking for remortgage deals to save money. The following article is designed to appeal to those seeking specific remortgage deals (UK residents), who are interested in looking for something sweeter than their current mortgage deal.
About Remortgage Deals UK Style
Looking for remortgage deals is not as complex as many people think. This is especially true when you are using online services offered by mortgage providers.
At the moment, there is tight competition among UK remortgage lenders. Many of mortgage borrowers change their mortgage every few years to take advantage of newer rates and better deals that are offered.
Those people who remain with their existing mortgage provider or mortgage type may lose the potential for better UK remortgage deals. But what does remortgaging involve.
In simple terms, remortgaging entails changing your present mortgage to a new one. This process can be arranged with your current lender or with a new mortgage lender. As a homeowner, may also want to consider remortgaging for a few number of reasons like the following:
- To save money
- To raise more money
- To avoid moving home
- To consolidate other debts
Finding The Best UK Remortgage Deals
When you are looking for the best UK remortgage deal, you may want to take into consideration the deals that are being offered to you and at the same time, make sure if they fit your circumstances. The following are some of the features of UK remortgaging you may want to think about:
Standard Variable Rate (SVR) – Here, most borrowers are shifted to their lender’s SVR the moment their deal rate period has ended. This is usually the most expensive lender’s rate.
Fixed Rate – This offers you a UK remortgage deal with the security of knowing how much you will be paying for the initial period, thus budgeting is made easier. However, repayments may prove to be more costly than a discount rate and can also become uncompetitive later on.
Capped Rate – Often, a capped rate remortgage deals UK borrowers higher rates than a lender’s comparable fixed products. The initial term seldom lasts longer than 2 or 3 years.
Discount Rate – This offers a reduction on the lender’s SVR deal; if the rate changes, the rate that you pay will also fluctuate in line with it. The shorter the discount period is, the higher the discount you get.
Tracker – UK tracker remortgage deals enable borrowers to know the rate that they are going to pay in line with the Bank Base Rates. Here, many of the lenders offer flexible rates.
Cashback – Cashback remortgage deals give UK borrowers an upfront lump sum, thus enabling them to pay for any debts or other expenses. The rate that is paid here is often the lender’s SVR.
Droplock – This can either be a discount or a tracker mortgage and provides the option to change into a fixed rate remortgage deal anytime without paying early repayment charges.
Summary Of Remortgage Deals UK
The remortgage deals UK borrowers are offered can vary enormously and so it pays to shop around. It may also help to take independent financial advice about what remortgage deals are available in the UK today.