Your mortgage repayments are probably your biggest monthly outgoing, and with lenders starting to hike rates, you don’t want to be paying over-the-odds. So, it’s important to bag the best mortgage rate you can if you’re remortgaging. If the numbers confuse you then this remortgaging guide will help.
We are currently seeing the best mortgages rates ever with interest fees hitting a historic low. However, it pays to get your skates on, as you never know when the freeze will thaw! So check out our remortgaging guide below for everything you need to know.
Image credit: Future Plc/Nikki Crisp
It’s simply the process of shifting your mortgage from one deal to another, either with your existing lender or a different one.
You’ll typically remortgage when your current deal ends to keep repayments as low as possible. If you don’t take action, you’ll move onto your lender’s standard variable rate (SVR). These rates currently average around 4%, which is far higher than the rate on new mortgage deals, so you’ll find your repayments suddenly shoot up.
You may also remortgage to borrow a larger amount using the equity inyour property to fund home renovation projects, say, or wipe out other debts. Mortgage rates are usually cheaper than other forms of borrowing, such as credit cards or personal loans.
It’s generally a relatively simple process. Use a broker as a remortgaging guide (more on their benefits below). Start looking on comparison sites to check rates around three to six months before you want your new deal to start. This gives you plenty of time to go through the process, and lock into a new deal.
Jo Thornhill, mortgages expert at MoneySuperMarket, says: ‘Identify the right deal for you and then make your application through your broker, or directly through your chosen lender. The new lender completes a valuation to check the property is sufficient security for the loan, and many deals offer valuations for free.’
The lender will also assess your financial situation, and if it is happy to go ahead, you’ll receive an offer. Finally, your mortgage will be legally transferred, and your new mortgage account opened.
Remortgaging is generally the right move if your deal is coming to an end. And, if you’ve now got a big chunk of equity in your home, you’ll be in a great position to get a competitive deal. The best deals are for homeowners looking to borrow 60% or less of their home’s value.
Beware that if you remortgage before your current deal ends, you’ll most likely face early repayment charges (ERCs). ERCs can be hefty, and are usually charged at between 1% to 5% of your remaining mortgage balance. So if you’ve got a £250,000 mortgage, the penalty could amount to an eye-watering £12,500.
If you’re sitting on the SVR, it’s generally wise to remortgage. However, there are a few scenarios when staying put makes sense. For example, if you’re in the middle of moving house, sticking with a penalty-free SVR may be best, or you may face penalties for moving to another deal.
Image credit: Future Plc/David Woolley
If you switched a 25-year £200,000 repayment mortgage from an SVR at 4.41% to a two-year fixed-rate at 2.29%, you’d save a hefty £5,405 over two years, according to financial analyst Moneyfacts.co.uk.
The number of new mortgages has continued to grow, despite recent increases in rates. Average two-year and five-year fixes remain low at 2.29% and 2.59% respectively, says Moneyfacts. ‘But compare the different options and factor in the whole package, including fees,’ stresses a spokesperson.
Chances are, you’ll be eligible for your current lender’s deals. Going down this route can also speed up the remortgaging process. Your lender may offer a simple ‘product transfer’ to switch your mortgage to a new deal, and keep your business.
By sticking with your existing lender, you may avoid paying mortgage fees too, potentially saving thousands of pounds. You also avoid going through the entire financial assessment process. If your circumstances have changed for the worse since you took out your last mortgage, this could be useful.
But remember, there are thousands of deals on the market, and you want to pay as little as possible for your mortgage. So, check what deals you may be eligible for on the open market, too, by speaking to an independent mortgage broker.
Securing any mortgage comes with admin. As part of the process, your credit history will be checked. This shows how you’ve dealt with previous debts, so it’s worth seeing where your score stands. You can check your credit report for free at agencies such as Clearscore and Experian.
Think about your outgoings, too, as lenders will look at these carefully when they do their ‘affordability assessment’. Bear in mind that your finances will also undergo a so-called ‘stress test’ to check you can afford repayments if interest rates rise by as much as 7%.
Image credit: Future plc/Veronica Rodriguez
You shouldn’t automatically go with your current lender’s offering, unless you have to, particularly if you’ve got a large amount of equity in your home. But the mortgage market is constantly changing, which can make choosing and comparing deals a tricky process. A broker will make an excellent remortgaging guide. They have up-to-date, professional knowledge and will speed up the process.
You won’t usually be charged a fee for arranging a call with a broker. They can help you find the best rate and type of mortgage for you, so it can be a really useful process. For example, you may want to consider an offset mortgage if you’ve substantial savings, but don’t know where to start.
Brokers will negotiate with lenders on your behalf, and speed up the application process. Some deals are exclusive to brokers, too, and you want to make sure you have all your options.
Some large brokers include L&C, and Habito, and you can also search Unbiased.co.uk to find a local one if you wish.
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It’s the cause of much debate up and down the country – is it right to add modern extensions to traditional properties?
If done sympathetically, we think yes. Absolutely. Need an example of a well-executed ‘old meets new’ project? Then take a look at this traditional Victorian house with modern extension.
Image credit: David Barbour
When they bought their five-bedroom Victorian villa in 2017, this couple set out to create their traditional meets contemporary home. They had decided to leave London after living and working there for seven years, choosing to return to the owner’s hometown of Stirling in Scotland. ‘We yearned for a less busy lifestyle, less commuting and more space for our growing family,’ she says.
Image credit: David Barbour
The couple were lucky enough to buy a handsome, Scottish category C listed, Victorian semi-detached villa. The property is located in a conservation area of the city. There was an existing extension, but was dated and tired looking. It lacked a sense of style to help blend into the existing property. The couple decided to replace it with a new kitchen extension.
The house itself had been in the same family for more than a century and was in dire need of modernisation. ‘The layout of the main house was great, but the two-storey extension just didn’t work. We wanted to restore the house sympathetically but also wanted a modern, large space for our kitchen to suit our family. We found local architecture practice Paper Igloo whose style was exactly what we wanted.’
Image credit: David Barbour
Following a fairly straightforward planning process, the two-staged build began. The builders set to work demolishing the two-storey extension. They replaced it with a new zinc-clad, single-storey extension. It’s constructed in an energy-efficient SIPS frame with high-performance windows and doors. It also boasts an eco-friendly green roof system.
The main house also underwent a major upgrade and refurb with new heating, replacement windows, insulation and decoration.
Image credit: David Barbour
The new glazed link not only provides a clear delineation between the ‘old’ and ‘new’ house, it also brings daylight into a new utility area.
‘Although we weren’t hands-on with DIY,’ explains the owner, ‘we were in terms of project management and purchasing of items. All the fixtures and fittings, tiles, flooring, radiators and glazing were sourced by us.’
Image credit: David Barbour
The new extension features a bright, spacious open-plan kitchen space opening onto the garden. A large rooflight adds further daylight and maximises sunlight in the space in summer.
Image credit: David Barbour
‘There honestly isn’t a room in this house that hasn’t been thought through ten times over! We get a lot of enjoyment from all of the rooms. But the extension is very much the heart of this family home every day. I’ll never tire of this space and in particular the glazed link between the revealed sandstone wall and extension which really allows you to appreciate the beauty of the original house.’
‘It had always been our dream to fully renovate a property. We now have a fantastic space in which we’ll enjoy many memories for years to come.’
Image credit: David Barbour
Martin McCrae, lead architectural designer at Paper Igloo (paperigloo.com) shares his advice on what you need to know about zinc cladding.
Original feature by Caroline Ednie
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Cleaning fans have shared a radiator cleaning hack that involves pouring hot water down the middle. A bucket or towel is placed underneath to catch the water.
Knowing how to clean your radiator is a must to prevent a build-up of dust. We asked experts if this hot water radiator cleaning hack is one to avoid.
Image credit: The Radiator Company
On Facebook group Mrs Hinch cleaning tips and tricks, one cleaning fan shared a before and after shot of her radiator. ‘Thank you to whoever suggested cleaning radiators with hot water,’ she writes.
‘We live in a student house and our allergies have been awful since we’ve been using the heating a lot.’ We asked UK Radiators whether it’s safe to clean your radiator’s fins with hot water.
The director, Daniel Nezhad says this would only be safe on a wet system, and should not be tried on anything electric or dual fuel. ‘Radiators are metal and designed to handle hot water, so it is safe – you won’t damage it or impair its functionality,’ Daniel explains.
Image credit: Future PLC/ David Parmiter
‘BUT, not all paint is designed to take boiling water directly, so there is a risk it could strip or damage the surface coating.’ The UK Radiators director also says surface damage caused by doing this could be considered misuse, depending on your manufacturer’s warranty terms.
Therefore, warm water would be preferable to water straight from the kettle. Daniel also says you should avoid using any detergents whatsoever. Even light detergents can react with paint if not properly removed.
You’d also need to be very careful of any plug sockets, your own safety, and your flooring. Sounding a little more trouble than it’s worth? We think so.
Image credit: The Radiator Company
Andrew Collinge, heating product manager at BestHeating agrees with Daniel that this hot water radiator cleaning hack is safe to try. He says clearing out dust may even mean you save money on your heating bills.
Speaking of which, this TikTok tin foil radiator hack might help keep the coldest room in your house warm. Andrew’s word of warning is to make sure the radiators are turned off before trying it.
Personally, we think using a long-handled radiator brush, £9.99 at Amazon, is a much safer bet. If you’re concerned about your heating bills, make sure you know how to bleed a radiator to keep them running efficiently.
Would you try this hack?
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