Some day your mortgage deal will come to an end, that is usually the time you may want to shop around for a new, cheaper product. This is what we call remortgage. Staying with your existing lender after the end of the agreed term of your mortgage (ie. for two or three years) will mean that you revert to the lender’s SVR (Standard Variable Rate), which is usually a few per cent higher than what you are used to paying. You can decide to stay on your current deal or may move to a new deal with your current lender, but you can also change to a completely different deal with a brand new lender altogether. In most cases this decision is worth of your consideration. No matter what choice you make it should be based on solid knowledge, we are here to share it with you:
Typical reasons behind remortgaging are usually: to get a better interest rate (if your initial deal term is over you are likely about to revert to usually expensive standard variable rate), to consolidate debt or to release equity. » Reasons behind remortgaging section
Do you have an impaired credit record (you may have previously been declared bankrupt) and are looking to obtain a mortgage? You will probably be offered a sub-prime mortgage. It will probably be at a higher interest rate than a regular mortgage as you represent a higher risk to the lender. » Sub-prime remortgage section
A large number of lenders pulled their larger LTV (loan-to-value - the amount lent as a percentage of the property's value) mortgages in 2008 as a result of the credit crunch. Almost all 100% and higher mortgages were abolished, so borrowers could no longer borrow more than the property was worth and even getting equal to properly value loan was an issue. » Remortgaging problems section
Remortgaging should be relatively straightforward, if you are going to stay with your current lender. Your existing lender will probably contact you before your mortgage term expires to present available options. Don't feel like you have to stay put. There are a whole host of lenders out there, who may have a more suitable mortgage offer for you.
You may like to get the help of a mortgage broker. They will be more adept at finding the right mortgage for you, but they also have access to products that aren't accessible directly to mortgage seekers. All Irish mortgage brokers are regulated by the Financial Regulator, meaning they are bound by a code and have to treat customers fairly. Mortgage brokers have to find the deal that is right for each customer and are not allowed to recommend products that may be lucrative for themselves only. After all if you have troubles finding the proper mortgage broker use Mortgages & Loans Ireland service, where you will be able to put your mortgage / remortgage requirements anonymously online and mortgage brokers will place their offers after a short while. Then you have a full comparison of all lenders and brokers at the same time.
You will find plenty of questions:
All questions above are answered in Remortgage Questions & Answers section.