Six steps to finding a mortgage
How easy is it to remortgage? Sprive offers you six simple steps to get you there quickly and hassle-free.
1. Think about your priorities
First of all, consider what is most important to you when you remortgage. While the lowest interest rate and fees are attractive, there are other aspect to consider. For example, the certainty of a fixed-rate mortgage may be preferable to a variable rate mortgage. Another aspect may be the flexibility of the mortgage.
2. Choose your intermediary
Once you’ve defined your priorities, the next step is to decide which intermediary you want to use to find the best mortgage deal for you. Ideally, you want to have visibility of as many mortgage options as possible that you are eligible for. It isn’t always easy, but if you can, try more than one intermediary. Just make sure you don’t limit yourself to a narrow search. Remember, looking outside of your existing lender could save you hundreds of pounds.
No idea how to choose a broker? Don’t worry. At Sprive we recommend choosing an independent broker that doesn’t represent specific lenders. They can provide a wide range of mortgage options that fit your circumstances and needs. Often, it is helpful if you have a broker recommended by someone else. Review the broker’s fees before moving ahead.
3. Identify and review your chosen mortgage
Once you’ve found the best deal on your mortgage, review the terms of repayment to ensure you can afford the mortgage. For example, if you have chosen a variable rate mortgage, work out if you can afford a jump in repayments if the interest rate increases unexpectedly.
4. Go back to your existing lender
It is worth contacting your existing lender to find out if they can match the mortgage option that you have identified. Your lender may be willing to adjust their terms in order to retain you as a customer.
5. Make the application
Once you have decided on your chosen mortgage, make the application. If you have chosen to use a broker, they will usually manage this process for you with guidance on what you need to submit at each stage. You’ll normally need to complete a credit check as well as show financial proof of your earnings. Some lenders may also ask to survey your property. If the lender is satisfied, they will issue a formal mortgage offer with terms and conditions, which it is worthwhile reviewing.
6. Hire a solicitor
Don’t forget, a solicitor is required to handle the finalisation of the mortgage agreement and the transfer of funds. It can be helpful if your broker liaises with the solicitor to make sure the process is on track and that nothing is missing or delayed. It may be worth asking your broker if this is something they are willing to do before you hire them.
Finding the best deal on your mortgage is a tricky challenge in the market today. There are many intermediaries you can choose from to find a mortgage. However, intermediaries don’t all offer the same options and they do not necessarily find the best deal possible, which can pose significant costs. It is a good idea to initially identify your mortgage needs and then hire an independent broker that can match your needs with the best possible mortgage deal from a wide range of lenders.