A remortgage is one of the most popular ways of refinancing a property. It involves switching to a new mortgage deal, which typically comes with lower interest rates and more favourable terms. While remortgaging can save you money in the long run, the process can be confusing and time-consuming. Therefore, many homeowners consider working with a mortgage broker to help them navigate the remortgage market.
Read on as we aim to explore whether you need a mortgage broker for the best way to remortgage, and the benefits of working with one.
What is a Remortgage?
A remortgage is the process of switching your existing mortgage to a new deal, either with your current lender or a new one. The main reasons for remortgaging include reducing monthly payments, accessing better interest rates, or releasing equity. Some homeowners also remortgage to consolidate debts or pay for home improvements. Remortgaging can be a complex process, and it is important to understand the pros and cons before making a decision.
What Does a Mortgage Broker Do?
A mortgage broker acts as an intermediary between you and the lender, helping you find the best mortgage deal for your circumstances. They will review your financial situation and recommend mortgage products that suit your needs and budget. A broker can also help you with the application process, including completing paperwork and liaising with lenders. Mortgage brokers are regulated by the Financial Conduct Authority (FCA) and must comply with strict rules and standards.
Do You Need a Mortgage Broker for a Remortgage?
While it is not a legal requirement to use a mortgage broker for a remortgage, many homeowners find it helpful. Here are some reasons why you might want to consider using a mortgage broker:
- Access to a wider range of mortgage products: Mortgage brokers have access to a wider range of mortgage products than you would find by searching online or going directly to a lender. This can help you find a deal that suits your specific circumstances, whether you are self-employed, have a poor credit rating, or are looking for a flexible mortgage.
- Expert advice: Mortgage brokers are experts in their field and can provide valuable advice on the best mortgage deals for your needs. They can also explain the pros and cons of different types of mortgages, such as fixed-rate or variable-rate mortgages.
- Save time and hassle: Remortgaging can be a time-consuming and stressful process, especially if you are not familiar with the mortgage market. A mortgage broker can handle much of the paperwork and communication with lenders on your behalf, saving you time and hassle.
- Negotiate better deals: Mortgage brokers have relationships with lenders and can often negotiate better deals than you would be able to on your own. They can also advise you on when to remortgage to get the best rates.
Are There Any Benefits to Using a Mortgage Broker?
While there are many benefits to using a mortgage broker, there are also some potential disadvantages to consider:
- The cost: Mortgage brokers typically charge a fee for their services, which can range from a few hundred to several thousand pounds. However, some brokers may offer their services for free as they receive commission from lenders.
- Limited access to exclusive deals: Some lenders offer exclusive deals that are only available to customers who go directly to them. Therefore, working with a mortgage broker may limit your access to these deals.
- Not all mortgage brokers are equal: While mortgage brokers are regulated by the FCA, not all brokers are created equal. It is important to do your research and choose a reputable broker with a track record of success.
Conclusion
Remortgaging can be a great way to save money on your mortgage repayments or release equity from your property. While it is not necessary to use a mortgage broker for a remortgage, many homeowners find it helpful to do so. Mortgage brokers can provide expert advice, access to a wide range of mortgage products, and save you time and hassle. However, there are also potential disadvantages to consider, such as the cost of using a broker. Ultimately, whether you decide to use a mortgage broker for your remortgage will depend on your personal circumstances and preferences.
Are you looking for a mortgage adviser? Everest Mortgage Services will guide you through big financial decisions to secure you and your family. Contact our team today!
