April 28, 2018
Tips before refinancing your mortgage

Thinking of breaking up with your bank?  

People often look to refinance when a fixed mortgage loan expires – and sometimes earlier. If other banks are offering better rates than your current bank, and/or incentives, it can be tempting to make the switch. 

But, before you do, you need to make sure you won’t incur break fees, or have to re-pay any incentive payments, for opting out before the term expires. 

Having said that, it’s worth bearing in mind that the competitive bank may offer you a cash contribution to secure your custom. This may offset any fees or payments you will incur in changing banks. 

Like all good relationships, talking things through is a good place to start. 

When refinancing, the logical first step is to see what both your bank and others are offering in terms of fixed and floating loans. 

Approaching multiple banks can encourage competition between banks – in our experience, banks have the ability to negotiate interest rates below their publicly-advertised rates. 

If you decide to refinance with another bank, normally this requires a discharge of your current bank’s mortgage from the Certificate of Title of your property, and registration of your new bank’s mortgage. There will also be new loan documents to sign. You will require a solicitor to help you with this process. 

If you can get better rates at another bank, and the positives outweigh the negatives of changing banks, then refinancing can be a good option.

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We have used Nick Earl for a variety of services recently and always find him great to deal with. He explains all the legal jargon well, and his team are well organised which makes the whole process easy for everyone involved.
Nick Clayton