Three Things To Think About When You’re Re-Mortgaging Your Home

OPINION

THREE THINGS TO THINK ABOUT WHEN YOU’RE RE-MORTGAGING YOUR HOME

Sarah Deacon, Area Manager for Wesleyan Financial Services (WFS) who

specialises in providing financial advice to lawyers, explains the top three things to consider when you’re planning to re-mortgage your home.

Remortgaging can feel like a chore, but with a little bit of work you can unlock some big benefits. Here’s the top three pieces of advice I give my customers when they’re looking to remortgage.

1. Understand the comparison

rates When shopping around for a mortgage deal, it’s easy to be seduced by headline-grabbing interest rates. But with so many factors to consider it can be hard to compare like for like. Some deals may include application, legal and product fees. Others don’t.

The one thing I always advise my customers to look out for is the Annual Percentage Rate of Charge (APRC). This is an overall cost for comparison. It’s quoted as a percentage of interest payable on the total amount of credit. It takes account of all fees that you might face.

When looking at the APRC, keep in mind that the calculation assumes you will stay with the same product and provider for the duration of your mortgage. In reality, most people look to switch once every few years.

2. Factor in the fees and costs

If you’re remortgaging before your current deal comes to an end, you may have to pay early repayment charges. These fees are often tapered as a percentage of the remaining balance, for example, five per cent of the remaining balance if you have three years left on your remaining deal, but only one per cent if you only have one year left.

If you leave your existing deal before the agreed period, the lender may also ask you to repay any incentives originally provided to you, such as free valuation fees, legal fees, or cashback offers. Remember to check the T&Cs when considering your options.

It may still be beneficial to move to a new mortgage deal despite having fees to pay. For example, the savings you could make over the term of a fixed deal may be more than the fee due if you exit your existing deal early. The solution that’s right for you will depend on your individual circumstances.

3. Your personal

circumstances matter It’s important to think about how your future goals might impact your finances. For example, if you want to become selfemployed or take a career break, you might want to consider a mortgage that gives you freedoms to take payment holidays.

As a lawyer you can also take advantage of your professional status and consider ‘professional mortgages’.

Lenders offering these mortgages will take your professional status into account and offer preferential rates. Qualification criteria typically include factors such as age and qualifications. WFS has access to a range of lenders who provide specialist mortgages for professionals and has arranged more than half a billion pounds of mortgages for professionals in the last two years alone.

For more information visit www.wesleyan.co.uk/ mortgages/personalmortgages

This article does not constitute financial advice. Your mortgage is secured on your home, which may be repossessed if you do not keep up repayments on your mortgage.

CHALLENGE US TO SAVE YOU MONEY ON YOUR MORTGAGE

Wesleyan Financial Services are dedicated to your profession and has arranged over £780 million in professional mortgage loans in the last 2 years. In addition to remortgages, we provide solutions across a broad range of mortgage needs, covering first-time buyers, movers and buy-to-let.

LEARN MORE AND SEE IF WE COULD SAVE YOU MONEY ON YOUR MORTGAGE

Download our free Remortgage Guide for Lawyers – wesleyan.co.uk/remortgages

Email us at financialreview@wesleyan.co.uk quoting 1002159

REASONS TO CHOOSE OUR MORTGAGE ADVICE SERVICE FOR LAWYERS:

Fee-free* mortgage advice service  Mortgages from across the market  Specific deals available to lawyers  Specialist advice from your local

Financial Consultant

*Wesleyan Financial Services will be paid a fee by the mortgage lender upon completion of the loan. There are charges for investment advice and other services.

Your mortgage is secured on your home. Your home may be repossessed if you do not keep up repayments on your mortgage.

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Most buy-to-let Mortgages are not regulated by the Financial Conduct Authority. Advice is provided by Wesleyan Financial Services Ltd. ‘WESLEYAN’ is a trading name of the Wesleyan Group of companies. Wesleyan Financial Services Ltd (Registered in England and Wales No. 1651212) is authorised and regulated by the Financial Conduct Authority and is wholly owned by Wesleyan Assurance Society. Wesleyan Assurance Society is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Incorporated in England and Wales by Private Act of Parliament (No. ZC145). Registered Office: Colmore Circus, Birmingham B4 6AR. Telephone: 0345 351 2352. Fax: 0121 200 2971. Calls may be recorded to help us to provide, monitor and improve our services to you. LAW-AD-22 12/20