Remortgage Myths Debunked Concerning Bad Credit, Remortgage Brokers and Cheap Interest Rates
There are many remortgage myths that can unfortunately begin to become a truth if they are heard often enough. Some become truths simply because they are passed around as truth from someone that knows very little about remortgages. Since it is important that you know the correct truth about everything to do with remortgages to make the very best decision possible for your situation, we are here to offer common remortgage myths and give you the whole truth you need to know.
Remortgage Myth: It is impossible to get a remortgage if you have bad credit.
Many homeowners believe they must have very good credit to obtain a remortgage and that bad credit will keep them entirely out of consideration for a remortgage. This is not true. There are many homeowners with bad credit that have gone on to successfully obtain a remortgage. There are certain things a homeowner will have to expect in looking for a remortgage if their credit is far from ideal. The lender will not be offering their very best remortgage interest rate. While the homeowner will have to take a higher interest rate due to the risk the lender is taking in lending the remortgage it is an opportunity to prove they can make payments on time and establish a new history with the lender for future remortgages deals. It will probably also be necessary for the homeowner to seek out the help of a remortgage broker that has the experience working with homeowners with bad credit. They will know which lenders that will be willing to consider an application and that will increase the likelihood of succeeding in closing the remortgage deal.
Remortgage Myth: It is more expensive to use a remortgage broker than to get a deal through a lender.
Again, it is entirely a false assumption that using a remortgage broker will mean you will pay more for a remortgage deal than going solo with a lender. In fact it could save you money to go through a remortgage broker. A lender can only offer you the best deals they have available on a remortgage. A broker works with many lenders on your behalf and therefore can offer you remortgage deals that are the best from several lenders. Brokers also get special offerings from lenders that are broker deals and are not available to those homeowners that come in solo to a lender to make a remortgage deal. Since a remortgage broker can find you the best deal among many lenders and offer you a special broker’s deal from a lender then they will most likely find you the cheapest remortgage deal available. That is why brokers are so popular when it comes to remortgaging.
Remortgage Myth: It is always best to look for the cheapest interest rate when it comes to choosing a remortgage.
It is common to focus primarily on interest rates when it comes time to look for a remortgage. However it is not in a homeowner’s best interest to look for only the cheapest interest rate. A homeowner should equally weigh the type of remortgage, the term of the deal, as well as any accompanying fees. High fees associated with a remortgage could wipe out any savings offered through a cheap interest rate.