Why Switching Mortgages Is Easier Than You Think!

23 May 2020

Why Switching Mortgages Is Easier Than You Think!

Mythbusting With Revolution Finance Brokers

As mortgage finance specialists, we work with clients from every sector looking for the best deals on the market. 

Here are some of the most frequently asked questions we hear, and why the myths about switching mortgages are not correct!

 

FAQ - Residential Mortgages

Isn't it just easier to stay with my existing mortgage provider?

Truth? - It might be, but you will almost certainly pay more. If you do nothing, most mortgage providers will switch you over to their Standard Variable Rate when the initial fixed interest period ends. That means that you will pay dearly for the convenience of choosing not to move your mortgage!

If you are put off by the paperwork, leave the hard work to us. Revolution Finance Brokers make switching providers seamless, so all you need to do is count on the savings you make.

 

Is changing my mortgage lender stressful?

Truth? - not if you use a mortgage broker to do the leg work for you! Comparing deals and scouring the market can sound complicated and time-consuming, but it is a service we provide every day.

Our consultants have access to the very best deals, new offers to market, and act as your advocate to negotiate for you. Using our service means you don't need to spend any time researching, don't have any of the stress of trying to calculate how offers compare and have none of the hassles of spending time on the phone going through your application details.

 

When you have a finance expert on your side, finding the best mortgage options is a breeze!

 

Am I going to save much money by switching my mortgage?

Truth? - you could save a considerable amount of money! We are always surprised that more people don't switch their mortgage regularly. Buying your home is one of the most significant investments most of us will ever make, and choosing to ignore the interest rate hikes costs homeowners thousands of pounds.

The majority of mortgages have fixed term rates, and then switch to the lenders' standard rate. That means that every time you change, you get several years at a low fixed interest rate, and can keep doing so to avoid ever paying those much higher standard charges!

 

Surely the Early Repayment Charge doesn't make it worth changing mortgage lender?

Truth? - An Early Repayment Charge doesn't apply to every mortgage, so firstly check your paperwork to see whether one applies. This charge is simply a deterrent from switching provider, and often even if you would have to pay this charge, you could save significantly more in reduced interest!

Average termination charges apply in the initial years, typically around 5% in year one decreasing to 1% in year five on a standard five-year fixed term. Revolution Finance Brokers provide a handy calculator to help you make an informed decision about whether it is worth staying put, or making the switch.

 

I've heard that remortgaging is expensive?

Truth? - The cost of remortgaging should be relative to how much you stand to save, so having a clear idea of any legal or valuation fees is crucial. Many of our clients enjoy mortgage offers that include these costs as an added value, so give us a call to find out how you can switch mortgages to a lender who will pay your switching costs for you!

There are sometimes arrangement fees, but this occurs even if you were trying to switch to a better product with your existing lender. You can also find mortgage deals with low arrangement fees, or even with options of choosing a slightly higher interest rate to avoid paying any costs at all!

 

As always, give Revolution Finance Brokers a call on 0330 304 3040, and we will let you know what offers are available. 

 

I can't remortgage right now because of lockdown?

Truth? - not true! Revolution Finance Brokers have been working diligently from our remote offices to keep every transaction moving. While lockdown has delayed some house purchases, there is no reason to postpone remortgaging, and particularly in a quieter market, you will find some incredible deals available to entice new customers to make a switch!

We are here and ready to help, so drop us a line today, and we will get the ball rolling.

 

I thought I could only remortgage if I need to release cash?

Truth? - Definitely untrue! Lots of people do remortgage to release cash from the equity of their home. Doing so can release funds to cover costs such as redecorating, building an extension, repaying other debt or covering the costs of a new car or university fees.

However, there is no restriction on when or why you remortgage, and switching to a better deal means making immediate savings without needing to increase the size of your mortgage.

Contact us now to discuss your personal options, Revolution Finance Brokers specialise in commercial and residential finance in Essex, Kent, London and Hertfordshire.

webmaster

Author

Almas Uddin

Related Posts

11 Mar 2022
Guide to Remortgaging to Finance a Home Renovation

Remortgaging your home is a great way to release equity and raise finance for those home improvement jobs you've always wanted to do. Before applying, it's vital to work out how much equity you have in your property and ensure sufficient capacity to borrow the funds required for the renovation you have in mind. In today's article, t..

10 Feb 2022
Do I Qualify for First-Time Buyer Status?

Do I Qualify for First-Time Buyer Status? Working out whether or not you are a first time buyer may seem obvious - but there are plenty of scenarios where your position isn't clear! Examples might include: New buyers who have inherited a property they rent out. Buy-to-let investors that have never purchased a residential hom..

26 Jan 2022
How Does a Remortgage Application Work?

Most homeowners know that remortgaging means switching a mortgage from an existing lender over to a new deal. However, the process isn't always obvious. If you're on a fixed-rate deal, you'll want to get ahead of the end of the term to avoid being shuffled onto a higher standard variable rate where your interest costs will undoubtedly ..

FCA disclaimer

The content included in our articles, blogs, web pages and news publications is based on information accurate at the time of writing. Note that policies and criteria can change regularly throughout the UK mortgage lending market, and it remains essential to contact the consultation team to receive up to date guidance. The information included on the Revolution Brokers site is not bespoke to any circumstances or individual application scenarios and therefore is not intended to be used as financial advice. The content we share is designed to be informative and helpful but cannot be relied upon to provide individual advice relevant to your mortgage requirements. All Revolution team members are fully qualified, trained and experienced to provide mortgage advice of an independent nature. We collaborate with lenders and providers who are regulated, authorised and registered with the Financial Conduct Authority (FCA). Should you require specific mortgage borrowing types, some products such as buy to let mortgages may not be FCA regulated. The Revolution team can provide further information about regulated and unregulated lending as required. Please remember that a mortgage is a debt which is secured against your home or property. Your home can be at risk of repossession if you do not keep up with the repayments or encounter any other difficulties in managing your mortgage borrowing responsibly. This also applies to any remortgage or home loan secured against your property, including equity release products.