How to choose the right Remortgage deal for you

Mortgage rates in the UK dropped to the lowest rate on record between July and September, at least according to recent figures released by the Bank of England (BoE). The overall average interest rate on mortgage advances fell from 2.83% to 2.76% during the third financial quarter of 2015, while the proportion of new mortgages that are fixed-rate reached 80.7% during the same period. The decline in interest rates is also appealing to those in the market to remortgage, as it offers them an opportunity to optimise their return over time.

How to achieve the best Remortgage deal

Even with mortgage rates declining, however, it is your duty as a home-owner to seek out the best possible deal to suit your financial circumstances. Here are the best steps towards achieving this: –

Understand your financial circumstances

This is arguably the most important consideration, as it is unwise to select from the range of available remortgaging deals without first appraising your own fiscal circumstances. This is particularly true if you are remortgaging to reduce your cumulative debt liability, as it would be unwise to take on additional financial responsibilities if this creates a more significant fiscal issue in the long-term. Similarly, it is important to note that while your mortgage in a secured debt, those that are unsecured may be less pressing in terms of priority.

Once you have gone through this process, you can make an informed decision and progress your application.

Compare the market and use your existing rates as leverage

The next step is to compare the market aggressively and in great detail, as this will provide you with access to the best, real-time deals. This should include two pivotal steps, as you first use central comparison sites to optimise your time and then visit independent service providers such as the Saffron Building Society to refine your search. This will enable you to access a wider range of competitive deals without compromising your ability to make an informed decision.

From here you can negotiate with potential lenders, using your existing rates and terms as leverage for an improved deal.

Limit the amount of Applications that you make

Your comparison efforts may leave you with a number of viable options, but you must work hard to refine and streamline this as effectively as possible. This will reduce the amount of applications that you make to lenders, and this is important as an excess number of rejections or credit checks will appear on your file and potentially have a negative impact on your score. This can undermine your chances of successfully applying for a remortgage, while also affecting additional applications in the future.