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How to avoid the remortgage pitfalls

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There can be drawbacks to remortgaging, and it makes sense to be aware of any potential problems.

Fees on your new deal

While fee-free remortgages do exist they are few and far between. Most lenders will charge a fee for remortgaging, as well as valuation and legal fees, so it is essential that you do your homework carefully to decide whether going through a remortgage is worth it.

Fees on your existing deal

Be aware that, if you are on a special arrangement such as a fixed rate or discount, you will usually have to pay an Early Repayment Charge to get out of your loan. This can cost thousands of pounds and may negate the benefit of a remortgage.

Loan to value/equity issues

If your home has not increased in value you may not have the option of remortgaging if your lender has tightened their criteria/reduced their maximum loan-to-value. If your home has lost value you may also be stuck and not allowed to remortgage.

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  • Sandra Cook

    My mortgage is now with Tulip managed by Engage Credit having been sold by NRAM. My circumstances have changed and I am unable to get a mortgage but it was always agreed that my daughter would be added. She and her partner live at the property and have contributed to all the bills and mortgage payments. Engage have been returning mortgage payments as they say they are unable to receive them from my daughters account despite NRAM accepting them for 18 months. Are there any lenders that would accept 3 people on a mortgage?

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