Remortgaging in Coventry can be a fantastic way to save money on your mortgage payments or access funds that are currently locked up in your home through an equity release remortgage in Coventry.
Many homeowners in Coventry typically begin their remortgage process about 3-6 months before their current mortgage deal is set to expire. Some homeowners, however, are uncertain whether they can remortgage during a fixed term, before it is due to end.
A fixed term mortgage is a type of mortgage where the interest rate remains fixed for a set period, usually between two and five years. During this time, you are legally obligated to maintain your mortgage payments.
In this article, we will take a look at whether remortgaging during a fixed term is viable for you and whether it is something you should consider doing.
When should you look into a remortgage in Coventry?
In Coventry, it is typical for homeowners to consider a remortgage on their property about 3-6 months prior to their current deal expiring.
This allows enough time for a dedicated mortgage broker in Coventry to carry out their work and ensures that you have a smooth transition, as your new deal will be ready to begin when your old one ends.
By doing this, you can avoid possibly lapsing onto your mortgage lender’s standard variable rate of interest (SVR), which is usually at a much higher rate of interest than the Bank of England base rate and is subject to change solely at the discretion of the mortgage lender.
These deals are generally more costly, and it is unlikely that they will be your best option.
Instead, your mortgage advisor in Coventry will utilise this time before your current deal ends to search for suitable deals that meet your mortgage needs, such as if you are considering a remortgage in Coventry for home improvements.
Can you remortgage in Coventry during a fixed term?
Remortgaging in Coventry before the general 3-6 months prior to the end of your fixed term is considered early remortgaging.
Although technically possible, you should bear in mind that your mortgage lender may present you with early repayment charges, as you are breaking the contract you signed at the start of your deal.
Should I remortgage in Coventry early?
The answer to this question depends on your specific goals. Our recommendation is always to seek remortgage advice in Coventry before making any decisions.
Typically, people don’t consider remortgaging in Coventry unless they have a very good reason to do so. Therefore, it’s important to make sure that you have a good reason for taking this step.
Some popular reasons for remortgaging include finding a better deal, protecting against possible interest rate hikes, and changes to inflation. Ultimately, you must determine whether remortgaging is financially beneficial to you in the long run.
Keep in mind that early repayment charges can be quite expensive, so it’s important to weigh the potential benefits and drawbacks of remortgaging.
Why don’t people usually remortgage in Coventry early?
Once more, it is advisable to stay clear of early remortgaging, as it may come with quite a costly early repayment charge. The costs can be particularly high if you are looking to do this very early on in your fixed term.
On the other hand, if it makes sense for you financially and the savings outweigh the charges, then it may be worth considering. We strongly advise that you speak with a trusted mortgage broker in Coventry, in order to make sure that it is definitely right for you.
Can I remortgage early in Coventry with the same lender?
Although a remortgage in Coventry typically involves taking out a new mortgage with a different lender, it’s important to note that you may also have the option to take out a new mortgage with your current lender, which is known as a Product Transfer.
The truth of the matter is, a Product Transfer is often just as, if not more popular than a remortgage in Coventry.
Your mortgage lender may even inform you when your current deal is set to expire, similar to how a mortgage advisor in Coventry would. While it’s still possible to initiate an early Product Transfer, you should keep in mind that there may be early repayment charges involved.
That being said, however, choosing to stay with your current mortgage lender may result in fewer fees, as you won’t have to pay the legal costs that come with switching to a new lender through a remortgage in Coventry.
Fees to Consider with an Early Remortgage in Coventry
When you decide to remortgage in Coventry, you should expect to be paying various fees, similar to any mortgage.
If you choose to remortgage early in Coventry, you may have to pay an early repayment charge in addition to the regular fees.
Early Repayment Charge
An early repayment charge is typically required when you want to leave your mortgage before the end of the contracted period, especially during the fixed term. The earlier you leave, the higher the charge is likely to be.
This charge is given to you, because you agreed to repay your credit over a specific period when you signed the contract with your mortgage lender. While remortgaging early in Coventry can benefit you financially, it also breaks your contract, resulting in a charge.
Exit Fees
Most mortgage types will have exit fees, which are typically required to be paid once you have fully paid off your mortgage. These fees may apply at the end of your full mortgage term or if you choose to remortgage in Coventry and switch to a new deal.
Valuation Fees
Valuation fees are typically associated with remortgaging in Coventry. If you opt for a Product Transfer, your current mortgage lender is already aware of your property’s value, so this may not apply.
On the other hand, if you switch to a new mortgage lender, they may want to assess the property’s worth before granting you a mortgage.
Some mortgage lenders might offer this valuation service at no additional cost, while others may charge a fee. Your mortgage advisor in Coventry will be able to provide you with more information on this during your free mortgage appointment.
Arrangement Fees
Product fees, also known as arrangement fees, are typically linked to specific mortgage deals. You may have the option to include these fees in your mortgage balance and pay them off in installments, or you could choose to pay them upfront.
Your mortgage advisor in Coventry can help you understand the specifics of these fees during your mortgage appointment.
How to Remortgage in Coventry Before Your Fixed Rate Ends
In most cases, you will need to show your commitment to a mortgage deal for at least 6 months before you can consider remortgaging in Coventry. Attempting to do so earlier may result in higher fees.
It’s important to reach out to your mortgage lender to inquire about the fees involved in remortgaging early, and to seek mortgage advice in Coventry of a qualified mortgage advisor in Coventry.
A free remortgage review can help you make an informed decision on whether to proceed with your plans or wait for your fixed-rate mortgage to come to an end.
During the review, our remortgage advice team will discuss the reasons for your desire to remortgage early in Coventry, and suggest the best course of action based on your individual circumstances.
Date Last Edited: December 6, 2023
