All of us have either known or experienced someone who refinanced a property. It is common sense to leverage your assets to help you achieve your goals or solve a problem. This is especially true when borrowing is available at extremely low rates.
Some people are particularly skilled at this type of lending, and they manage their assets and ambitions in an amazingly strategic and effective way.
It’s not luck or magic. Sometimes it’s just a matter of following some key principles that will help you to identify opportunities and when to take advantage.
These are the top points that we have learned from years of experience in organizing refinancing deals to our satisfied customers.
- Always start early – This golden rule applies to property finance. Give yourself plenty of time. This will help to minimize any delays at the bank, solicitor, or anywhere else. A bank that has a low rate will typically have a lot of applications to process, which can lead to delays. This serves two purposes. Most Beverly Hills Mortgage Brokers prefer to initiate client remortgages at least four or five months ahead of time. First, it will allow enough time to complete in 99 percent of cases. Second, it will ensure the lowest rate.
- Beverly Hills Mortgage Brokers help find you great rates at the bank if you choose to remortgage. When your current deal expires, the rate will be locked for you. There are still 3 to 4 months before the rate is finalized. But what if rates drop? You will then be offered a better rate. We can also secure the lowest rate if rates rise.
- Avoid the lure of a freebie. The majority of remortgages offer free valuations and free solicitors. It’s a no brainer, I hear you say. “The solicitors I used when I bought my house were PS2000.” Do not be deceived. A few years ago, many banks began offering cash-back in lieu of a solicitor. This was because the conveyancing services provided by the bank’s preferred conveyancers were terrible. Remortgages often require less work than a solicitor, and cash-back will pay for it. You have the option of choosing! Although it is worthwhile to get a free valuation, the lender may not tell you the exact value. They only want to determine if the property is sufficient to qualify for the mortgage product.
- Do not Zombie Walk into Remortgages – Most Beverly Hills Mortgage Brokers often see remortgages as a carbon copy or a reduction in the term. Consider this: Your original mortgage was for 30 year. You took a 2-year agreement, which gives you 28 years. Your rate was 2.5%, and you still have PS225,000 outstanding. Our clients’ situation is always assessed thoroughly. We can reduce the term by four years and save you approximately PS14,000 over the life of your mortgage. As mortgage professionals, we can help you save money by letting you know what your budget is.
- Do not limit yourself to your existing lender – It can feel quite comforting when the mortgage rate increases by PS300 per monthly in 5 months and the lender contacts us saying that you are eligible for an improved fixed rate. They don’t tell the truth. Other banks will offer a lower rate and are willing to serve as your mortgage provider. While staying with your current lender may be beneficial in certain circumstances, such as a decrease in your income, it is always worthwhile to check out what other banks are offering.
- This is the best time to raise capital – If your plans include an extension, a home office, or buying a second property, a remortgage may be the best option. You have other options if your fixed rate is not sufficient. However, these can come with higher fees and a higher rate. Our Beverly Hills Mortgage Brokers will talk to you to determine the best path forward. Once it is all done, we will keep in touch until you are satisfied.