Remortgage Benefits Outnumber Minor Details of the Process
A clear path to saving money with remortgage can sometimes rely on the lender’s ability to provide an accurate redemption amount to the borrower in a timely manner. This period of waiting for the exact redemption amount can sometimes float into the maturity date of the loan and the borrower reaching the transition to a costly SVR. This issue is now being highlighted and discussed by more experts close to the housing market.
Although some lenders will only release this information in the last month of the term of the loan, this should not discourage house owners from seeking remortgage. The amount of savings for most owning property is more than worth the wait.
The wait period of a redemption amount averages five days currently. House owners in search of remortgage are being urged to plan a strategy timeline to manage the process. This should include researching what is available, then applying for a remortgage a few months prior to the actual maturity date of the loan. This buffer time is important so the redemption amount can be calculated and provided to the borrower in sufficient time.
Some lenders will charge an ERC or early redemption charge in the event the loan is paid off at a time other than the last month of the loan. Making sure of the details regarding an ERC is important whilst obtaining an initial mortgage loan.
The amount of savings possible with remortgage is worth developing a strategy to obtain it. Although a loan could possibly contain an ERC, housing specialists urge house owners to educate themselves on the value of remortgage and the potential savings which come with it.