subject: ReMortgaging – Can It Still Be Worthwhile? [print this page] Mortgage banks have a somewhat offensive term for people to switch lenders for lower interest rates they are called "Rate Tarts". The author has a much more appropriate description Astute Shoppers! Finally, why you are subject to an implicit criticism for that you get the best deal? After all a from a lender as effective as a from another!
The mortgage is extremely competitive and as long as the lending rates to use the prize as the most importantWeapon in their marketing campaigns will encourage price competition to hunt on remortgages favorable offers. Call them Rate Tarts if need be, but guess who will not be the richer! You're just playing the market by its own rules.
In an attempt to curtail shift some lenders have raised their fees-before, while the enlightened have their customer loyalty is enhanced. In such a cutthroat market, there are the awards for best customer loyalty awardPrograms, but in front fee increase will reduce the lender's market share, although for better profit margins. It seems that some mortgage lenders have yet to find out that carrot sticks to beat!
Take Birmingham Midshires, for example. They are currently offering two years with 3.89% fixed date. This looks like a bargain until you read the fine print they have hiked the fee to a massive 1499! When you write, the fee within two years to EUR 749.50 per yearthat an additional 0.75%, equivalent to a 100,000 mortgage.
So if you want to remortgage you need to do a little homework. First, the calculation of the costs of moving your mortgage. Remember to add in the attorneys' fees, to change the mortgage (usually around 350 to 100,000 mortgage), the valuation fee (typically 250 for a mortgage 100.000), the processing fee (usually 500 ), maybe a booking fee ( 50?), plus the cost of any penalties you are subject, if you your refundexisting mortgage.
Now get on the phone to your existing lender.
Let them know that you are planning to move for a better offer. If you do not put pressure on lenders often work on the basis that, provided they have a very attractive business, of course, is apathy prevail borrowers will be happy to sit tight and avoid the cost, time and trouble remortgaging. To shake the tree and see if a better offer comes. If your current lender offers you onlyStandard conditions with variable interest rate they do not guarantee for your business!
