Remortgaging in advance with a Mortgage Bazaar offers significant benefits, primarily the ability to lock in a favorable rate early while the broker continues to monitor for better deals, and leveraging their market expertise and administrative support to ensure a smooth, cost-effective process.
Benefits of Remortgaging in Advance
Avoid the Standard Variable Rate (SVR)
By starting the process up to six months before your current deal ends, you secure a new rate and avoid automatically rolling onto your lender’s SVR, which is usually a much higher, more expensive interest rate.
Hedge Against Rate Rises
You can lock in a rate in advance, protecting you if interest rates go up before your current deal expires. If rates fall in the meantime, most lenders and brokers allow you to switch to a lower rate or a better deal before completion.
Sufficient Time for the Process
Remortgaging can take several weeks (typically 4–8 weeks). Starting early provides ample time to gather paperwork, conduct valuations, manage legal work, and resolve any potential issues without rushing and risking being stuck on the SVR.
Time for Financial Spring-Cleaning
Planning ahead gives you time to check your credit report and make improvements, such as paying off outstanding debts or correcting errors, which can improve your loan-to-value (LTV) ratio and secure better rates.
Flexibility and Certainty
Locking in a fixed rate early provides certainty in your monthly budget, which is especially valuable in a turbulent market.
Benefits of Using a Mortgage Bazaar
Whole-of-Market Access
Unlike going direct to a bank, which only offers its own products, a “whole-of-market” broker can compare thousands of deals from a wide range of lenders, including exclusive deals not available to the public.
Expert, Impartial Advice
Brokers are regulated by the Financial Conduct Authority (FCA) and have a legal duty to recommend the most suitable product for your specific circumstances.
They can assess your needs and advise on all factors beyond just the interest rate, such as fees, flexible features (overpayments, payment holidays), and mortgage terms.
Time and Effort Saving
A broker handles the entire application process, including all the paperwork, liaising with lenders, and coordinating with conveyancers (solicitors), saving you considerable time and hassle.
Higher Approval Chances
Brokers understand different lenders’ criteria and know which ones are most likely to accept your application based on your financial profile (e.g., self-employed, variable income, or “bad” credit), reducing the risk of rejection.
Cost vs. Savings Analysis
A broker can perform a comprehensive cost-benefit analysis, weighing up any early repayment charges (ERCs) and new fees against the potential long-term savings of a new deal, ensuring that remortgaging is financially worthwhile.
Ongoing Support
A good broker can offer ongoing support, monitoring rates even after your deal is secured and notifying you if a better option becomes available before completion.
Conclusion
By combining early planning with professional help, you maximize your chances of securing the best possible remortgage deal tailored to your needs, minimizing stress and potentially saving thousands of pounds over the life of your mortgage.
Mortgage Bazaar helps people remortgaging up to 6 months in advance, saving them money by locking them earlier in the lowest rate with the best lenders, comparing them across whole of the market.
THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR PROPERTY. YOUR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.