Getting more with mortgage comparison sites
Things move quickly in the world of mortgages, and what looked like a good deal one, two or five years ago might be far more expensive by comparison with today’s standards. If that is the case, there is a good chance you will benefit by remortgaging to a better package. This might seem like a big step. It is, but not for the obvious reason. Mortgage comparison websites can take most of the legwork out of the research for you, bringing you a wide range of different deals with very little trouble. The real impact these can make is on your wallet: given the large amounts and long terms involved in most mortgages, you could literally stand to save thousands of pounds.
A web search will list a number of mortgage comparison sites – take your pick and browse the options on a few of them. Some will have built-in calculators that will allow you to compare your existing package with the range of deals that are on the market now, showing you how much you could save in the best case scenario. A few minutes with one of these sites should give you a clear indication whether now is a good time to consider remortgaging.
Mortgage comparison: finding the right deal
The sites will give you basic information about each mortgage: the lender, the rate of the mortgage and the term of any special introductory offer, the size of the deposit you will require and/or maximum LTV (loan to value) allowed, any arrangement fee attached to the deal and the total amount you can borrow. You should bear in mind that many of the best deals are only available to new customers; these preferable rates may be available for the first two or three years, before reverting to a standard rate.
You will need to weigh up the variables – or get the site to do it for you, if it has a calculator. For example, if your own mortgage has an exit fee, or the new one has an arrangement fee, you should offset this against any savings you might make. If the new mortgage has a good introductory rate for the first couple of years, but then gets more expensive, it might not be worth paying these fees. Of course, if the new mortgage doesn’t have any exit fees, there is nothing to stop you shopping around again at the end of the introductory period.
This might be a time to reconsider your own circumstances, too. Perhaps you are worried about interest rates rising, and want to take the opportunity to remortgage to a fixed deal for safety in the future. Or you might have more in savings, meaning an offset mortgage might be worth getting. Alternatively, you might have a little extra money now, and feel it is worth finding a new mortgage that allows you to overpay, therefore decreasing the overall term.
