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Getting ready to remortgage

If you’re into the last year of your current mortgage deal, follow these steps to make sure you’re in the best shape when it does end.

If you don’t set up a new deal, with the same lender, or a new one, you will revert to the lender’s Standard Variable Rate (SVR) and this will usually cost more than it would on a new deal.

Follow these top tips as you from around 12 months out from your remortgage date to put you in the best position you can for when your current deal expires.

1. Check your remortgage date

The first thing to check is when your current deal actually expires. Some believe that their deal expires on the anniversary of their completion and when they moved into their new house. That’s not always the case.

Some mortgage deals run to fixed end dates, which are more likely tied to your original application date or mortgage offer. Make sure you’re working towards the right date. If you’ve done a mortgage with Chartwell in the past, we’ll let you know your date in plenty of time.

2. Speak to an adviser if you’re 6 months or less away from your expiry date

If you’re within 6 months of your current deal expiring, book a meeting with one of our team and we’ll be able to guide you through the whole process, including deciding whether you’re best placed to stay with your current lender, or go somewhere else.

3. Keep your credit file in good order

This is good advice at any time, but in the run up to your remortgage, make sure you don’t accidentally miss any payments, or spend too much time in an overdraft.

Good discipline can be helped with steps like making sure you have a direct debit for credit card minimum payments, so even if you’re a little late with your main payment, you don’t hurt your file.

4. Think about deferring big purchases on credit

If you’re into the last 12 months of your mortgage, it may not be the best time for making a large purchase, like a new car. It’ll impact your affordability and therefore limit options when it does come time to remortgage.

5. Check your credit report

Make sure you have a full understanding of everything on your credit file and see what, if any, debts can be paid in advance of your remortgage.

6. Estimate your property value

Understanding what your property is worth can have a big impact on which lender is most suitable for your remortgage. Property prices to fluctuate and whilst historically they have risen it may not always be the case. Understand what the property is worth using Zoopla or some other valuation service.

7. Consider Loan to Value thresholds

The best mortgage deals are available to those with low Loan to Value (LTV) ratios. Thresholds for mortgage deals tend to run in in bands at 90%, 80%, 75% and 60%. If your mortgage balance and property value put you within touching distance of the next band or even some other 5/10% limits, consider saving and making an overpayment so you can secure a better deal at remortgage.