Borrowers need to have remortgaging explained before switching deals.
Those borrowers wanting to switch mortgage deals need to have remortgaging explained so that they fully understand what they are agreeing to before signing up.
With the UK housing market showing little sign of improvement more borrowers are choosing to switch deals without moving home. Remortgage deals allow home-owners to sign up to better rates, release equity in their home or consolidate debt.
Some borrowers will have to switch from their current provider though, as some lenders do not offer remortgages to existing customers.
There are several points for borrowers to consider when switching deals, and so to avoid being signed up to a new deal that will cost more money in the long term, it is advisable for borrowers to have remortgaging explained before switching.
Deal Direct can help you get the best remortgage deal available in the UK today.
It is important for borrowers to find out if there is a 'tie in' clause to their chosen re-mortgage deal. For example, once an agreed fixed term ends will the borrower be 'tied' to their lender's variable rate and if they are, will there be a penalty for breaking the tie.
Other benefits to having remortgaging explained include finding out if there is mortgage indemnity insurance to pay. This insurance, also known as mortgage indemnity guarantee (MIG), is a premium paid to lenders to purchase an insurance policy against future loss.
Generally this cost is being phased out by lenders but it is still something to watch out for, especially on loans at 80 per cent LTV and above.
