L
enders provide you with funds to buy your London property and they will offer you and introductory rate (fixed or tracker) to go with them rather than a rival. Where their REAL profits lie is at the end of that introductory rate.
You’ll revert after that period to their Standard Variable Rate (SVR). Every month that you pay at that rate is like a mini Christmas day for them.
Of course that is the moment to re-mortgage onto a better deal. Believe it or not, a lot of people end up paying the SVR , they really do.
A common myth is that your existing lender will “offer me a good deal”. In our experience, they don’t. They will play on a mixture of your busyness and unwillingness to move to offer you a deal to stay that is not that great.
Normally you will find better elsewhere.
In answer to the question that you’re now thinking – YES! A lender will offer a better deal to attract new customers than it will to retain its existing customers. It’s not difficult to see how they got themselves in a pickle is it?
So here’s the process:
- 8 weeks before your deal expires drop us a line (for our existing customers, don’t worry, we’ll be in contact with you)
- Decide whether to pay some of the loan off, or raise some of the equity out – or just leave things the same.
- To remortgage will take about 6 weeks (at a gentle pace).
- Choose a new introductory deal, get the offer out
- Move the legal charge and set the whole thing up for the day after your initial introductory deal expires.
Not tricky. Save’s you potentially bundles of money when sourcing a London remortgage.
