No Redemption Fee Secured Loans and No Problem Remortgage

Need a no problem remortgage?

Remortgaging simply means switching your existing mortgage to a new deal, often to a new mortgage lender. There are literally millions of borrowers currently paying their lender's standard variable rate (SVR). No lender's SVR will be the best deal they have on offer. Unless you have just come out of a special deal (such as a fixed rate or a discounted rate), there is nothing to stop you switching off the SVR to a lower rate or a more suitable deal. And even if you have just come out of a special deal and are obliged to pay a penalty to switch to a new one, the figures may well add up in your favour.

Click here to apply for a no redemption fee homeowner loan.

These days the process is easier than ever before - so why not take advantage of the situation?

REMORTGAGE TIPS

1. What different types of remortgage deals are available and how do they work?

Many lenders offer a wide range of remortgage products - fixed rates, capped rates, discounts, cashbacks, flexible deals and Base Rate trackers, for example. Make sure the new lender or advisor explains the pros and cons of whichever deal or deals you are interested in.

2. What is the interest rate I will be charged on the new deal?

Whichever type of remortgage deal you opt for, the lender or adviser should tell you what interest rate you will be paying and, in the case of a fixed or capped rate for how long.

3. How much better would my new rate be?

The lender or advisor should be able to favourably compare the new rate on offer with the old rate you were paying, and work out for you how much you will be saving per month (unless you are increasing the size of your mortgage at the same time, in which case repayments might not be coming down).

4. What is your standard variable rate (SVR)?

While it rarely makes sense to remortgage directly onto a new lenders variable rate, if you are going for a discount, fixed or capped rate you may have to pay their SVR when the mortgage deal finishes. While, as the name suggests, variable rates vary over time, comparing today's SVR with that charged by other lenders may give you some idea of how truly competitive your new lender is.

5. How much will the monthly payments be at the new quoted interest rate?

The advisor should tell you exactly what your monthly payments will be at the rate quoted. In addition, make sure they show you how much you would be paying at the standard variable rate to give you an idea of what you will be paying after your product term comes to an end.

6. What is APR?

The annual percentage rate (APR) has to appear in all adverts alongside the headline mortgage rate. APR's are meant to provide customers with true reflections of the cost of loans, and help them compare different deals. In practice, the APR is unreliable and no substitute for individually-prepared quotes listing all upfront and ongoing costs.

7. What are the redemption fees?

Some lenders have scrapped redemption penalties but many still apply them to certain deals. A redemption penalty may be charged if you pay off or switch your mortgage within a certain time period. Before you remortgage, check whether redemption penalties apply to your existing deal, and if so, how much they will cost - they can run to thousands of pounds. And check whether the new deal will carry redemption penalties too.

8. Will I have to pay arrangement fees?

It depends. Lenders are so keen to get your business that many have developed special remortgage deals that come with no fees. So they may well pick up the tab for the valuation, and even pay your legal fees. Otherwise it may cost you a few hundred pounds.

9. How long should the process take?

How long is a piece of string? If there are complications, it may take a while to sort out a new deal. Most people who have remortgaged in the last year have sorted the whole thing out in a week, and some within a number of days. Your adviser should give you an idea of the timescale involved

10. Can I remortgage more than once?

You can remortgage as many times as you like, and as often as you like. But bear in mind that you may well be liable to pay redemption penalties if you are currently on a fixed, capped or discounted rate. And you may have to pay arrangement fees. But you should look at your mortgage every year and see whether remortgaging would save you money.