Importance of ­comparing online remortgages

When you are looking at online remortgages you may wish to compare the different types of policies that are available so you can work out which remortgage is appropriate for you and your circumstances.

Mortgage types

There are numerous types of online remortgages on the market, each with different terms, conditions and rates of interest. If your income varies for any reason, for instance if you bonuses that aren't part of your contracted salary package, or if you are self-employed and rely on seasonal work then a flexible remortgage may be appropriate for you. If you want to make sure your repayments are the same every month then you may wish to opt for a fixed rate remortgage.

Interest rates

Interest rates can vary depending on the type of remortgage you are looking for and the current Bank of England base rate. In order to find a competitive remortgage quote you may wish to compare the interest rates on a number of different policies to make sure that you will be able to keep up with repayments.

If you choose a remortgage policy that is linked to the Bank of England base rate then the interest rates on the remortgage may change over the period of the loan. This may be problematic if interest rates rise dramatically.

The amount you wish to borrow

Mortgage providers generally calculate the amount that they are willing to lend you depending on your personal circumstances and your income and financial status. If you looking for quotes for remortgages, then you may find it worthwhile comparing a number of different lenders in order to obtain the amount that you need to borrow.

Alternatively, using an online remortgages broker may be an option, as they do all the legwork for you in finding a suitable deal!

Terms and conditions

Mortgage providers may also have different fees that are payable when you arrange a remortgage which you may need to take into account. It is common for a mortgage provider to have an arrangement fee, particularly if you are remortgaging with a different lender than your original mortgage provider. There may also be fees payable if you choose to repay your remortgage early. If a lender requires a valuation of the property that you are remortgaging they may also charge a valuation fee. Legal fees may also be included in the remortgage terms and conditions to protect you should you require advice or become unable to make repayments. When you are comparing online remortgages you may wish to include any additional fees into your budget calculations.