A low interest rate is the best kind of remortgage for a homeowner. To find the best remortgage, all you have to do is compare the interest rates of different lenders. But there is a benefit to being a home owner who wants to refinance. They can work out a good deal with their lender.
Getting a starting point from your current lender is the first step in negotiating for the best remortgage. The homeowner should talk to their lender about their remortgage options and find out what they have to offer. At this point, the homeowner thanks the lender for the quote and starts to look for other options.
For the best remortgage, the homeowner should look at other lenders and get quotes. They want the lowest quote, preferably lower than what they are getting from their current lender. Once they've found the lowest rate possible, they'll go back to their current lender.
The home owner has the upper hand at this point. Their lender doesn't want to lose their business, and they know that the only way to do that is to match or beat the lowest quote they got. They know the homeowner just wants to save money. At the same time, though, they are trying to make money, which can be a pain.
The lender might offer other deals, so the home owner needs to make it clear that the interest rate is the deal-breaker. As long as the other quotes are similar to the original mortgage in general, this is the best thing to do.
But if the other quote includes fees or other costs, the lender will use that to their advantage and try to get the deal. That's why it's important to get quotes that are exactly the same as what the homeowner is trying to negotiate with the current lender.
During the talks, the lender will either give in and give the homeowner the interest rate he wants, or they will say they can't do it. If both parties agree, the remortgage can go forward. But if they can't get the lowest rate, the homeowner needs to go to that lender to start the process of remortgaging.
The home owner is the only one who can do anything to get the best remortgage. At first, lenders won't jump at the chance to offer very low interest rates. But if the homeowner negotiates and shops around, they gain the upper hand and can force their current lender to give them a lower rate.
This works because the homeowner's current lender doesn't want to lose the business of the homeowner. But other lenders are more than happy to offer low rates in order to get the business of home owners.
But there are some benefits to staying with the original lender. It speeds up and simplifies the process a lot. Plus, the homeowner knows this lender and has worked with them before. But in the end, saving money and getting the best remortgage rate are the only things that really matter.
