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Remortgage FAQ’s and TIPS


Do I have the option of good Remortgage deals in the market?

There are numerous mortgage lenders in the UK mortgage market offering a variety of remortgage deals at attractive terms and conditions. The products are offered under various mortgage types such as fixed interest rate mortgage, variable interest rate mortgages, capped and discount rate mortgages. They also offer flexible tailor made deals. However it is key for you to understand the advantages and disadvantages of each remortgage type before you zero on to one deal.

At what interest rate should I take up the new Remortgage agreement?

The interest rates keep fluctuating based on the base rate set by the Bank of England. If you are opting for a remortgage due to fall in market interest rates then make sure you pick up the best idea i.e. with competitive rates (interest rate lower than your current mortgage agreement). If you are opting for a Remortgage for changing the mortgage type to fixed or capped interest rate, then seek the lenders advice for the terms and conditions.

What do they mean by the Standard Variable Rate? (SVR)

The SVR or the Standard Variable Rate is based on the rate set by the Bank of England. Each lender will have set its own Standard Variable Rate. For more details for Standard Variable Rate.

What do they mean by the Annual Percentage Rate? (APR)

The APR is required to be printed on all remortgage and mortgage advertisements. Therefore you will find it as the quoted mortgage rate. The main aim of quoting the APR is to let the general customers know about the effective interest cost of the remortgage so that they can take effective decisions and compare between various mortgage deals. However in practical sense, APR has proved to be an unreliable source to determine the true hidden costs and therefore it is advisable to go through all the points before choosing a remortgage loan.