What options do you have?
Product Switch
This is where you stay with your existing lender and move from one deal to another. Provided your circumstances have remained broadly similar and you don’t have any arrears on your mortgage this is normally a shortened application process. Your new rate would then start as soon as the old one stops, provided the application is submitted early enough.
Remortgage
This is where you move your mortgage from one lender to a new lender. You need to go through the full application process again and will need to involve a solicitor to take care of the legal work. Some lenders will pay for the legal work to be completed provided you use their solicitors, and some will offer cashback as part of the new deal.
Timeline
When should you dig out your paperwork and start to look at everything again? As with most things, the earlier you are prepared the better. There is a lot to consider when your mortgage is due for renewal so let’s break it down.
9 Months Before Renewal
Have a think about your future plans:
- Do you intend to move again?
- Does the kitchen require renovation?
- Does the roof need to be replaced?
- Are you left with extra money or not enough at the end of each month?
If you haven’t already heard from your Mortgage Broker, book an appointment to chat through your future plans and the options available to you.
6 Months Before
At the 6 month mark you should receive a letter from your lender to remind you when your rate is due to expire. At this point you can now prepare to submit your new application. Your broker will be able to look for any preferential rate from your existing lender or more competitive rates from your new lender.
3 Months Before
If not done already it’s time to get your application in, whether you are staying with your existing lender or moving to a new lender you need to make sure everything is submitted and approved with plenty of time to spare in case any issues arise. Don’t worry about missing out on lower rates, if the lender launches a lower rate during the application process you can still take advantage of this.
Rate Expiry Date
Everything should switch over automatically without any manual input from you.
Don’t have a broker? Get in touch and let us help guide you through the process.
