Gone are the days when people kept date with the same mortgage lender through out the long repayment duration and lost valuable money in paying higher interest rate. These days the homeowners are more informed people about how they can shift to the other mortgaging lender in order to save on the interest rate. This way in short is called remortgage loans. Homeowners must know if it is about time to shift the mortgages to other lender to save thousands of pounds.
Usually when you approach to a mortgage lender, he lures you into making the loan deal by offering lower interest rate and discount deal. And you fall in the trap or may be you thought it fit to take advantage of the low interest rate. But unfortunately the mortgage lender starts charging standard variable rates which are often two percentage points higher than the Bank of England base rate. So later you have to pay higher interest rate to mortgage lender. It is generally believed that if your current mortgage is of more than three years then you are paying higher interest. Also take note that many mortgage lenders offer discount deals and low interest rate in the hope that later the borrower will forget to remortgage and will end up paying higher interest.
So just when your lender starts charging higher interest rate, switch to another mortgage lender which in other words means take remortgage loans. This implies that the remortgage lender will also charge a lower introductory interest rate on remortgage loans and thus you are able to save huge amounts by getting rid of higher interest rate mortgage. The best way of finding the right time of switching for remortgage loans is to keep yourself updated on what is being charged by your current lender as interest rate and what are the prevailing interest rates in the marketplace. And do not fear your adverse credit history as numbers of remortgage loans lenders are there in the market for winning you as a customer.
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