Mortgage refinancing: How to transfer your mortgage.

Mortgage refinancing. How to transfer your mortgage.

There is a lot to consider when you want to switch banks and refinance your mortgage. Learn how to transfer your mortgage, why it is not enough to just compare mortgage interest rates, and when it pays off to refinance your mortgage despite the early repayment penalty.

The ideal time to refinance a mortgage

If your mortgage is about to expire, it's time to begin thinking about continued financing for your home. Should you extend your mortgage with the same bank? Or are you considering switching banks and refinancing your mortgage? Both are possible, provided you adhere to the required periods of notice. Even some fixed-rate mortgages have notice periods, which can be as long as six months. The only way to refinance a mortgage without incurring additional charges is to cancel it before its term expires.

Even if your mortgage is not due to expire until sometime in the future, you can start thinking about future financing now. A forward mortgage, also known as a forward fix mortgage, can be concluded up to one year in advance – and even up to three years in advance at Credit Suisse. For this type of mortgage, the bank charges what is called a forward premium. A forward mortgage is a good idea if you assume that interest rates are going to rise, because it enables you to lock in currently attractive mortgage interest rates for the future. This means it can make financial sense to take out a mortgage early in order to secure yourself a favorable interest rate.

Comparing mortgage interest and conditions

Before you refinance your mortgage, you can obtain offers from different financial institutions. This is wise because mortgage interest rates vary from one bank to another, and their fees differ just as much. It is therefore not sufficient to look at only their mortgage interest rates. Examine the offers carefully and don't let yourself be deceived by a supposedly low interest rate. Some banks charge fees for extending or altering a mortgage. The contractual terms and conditions can vary greatly. You should also pay attention to the bank's experience. At Credit Suisse, you will receive advice from certified financing experts based in your region who know the market inside and out.

As well as comparing offers from bank to bank, it is also essential for you to consider different mortgage models and terms. Both fixed-rate mortgages and flexible mortgage models have advantages and disadvantages, and the reasons for choosing one or the other depend on the circumstances. It is also important to compare the full range of banking services. Good advice takes into account your personal needs, future plans, and overall financial situation.

Should you refinance your mortgage or extend it?

Anyone wishing to refinance their mortgage should take care of it at an early stage and observe the deadlines. Compare interest rates, contractual terms and conditions, and the expertise of different mortgage lenders. Would refinancing be a good idea or might extending your mortgage with your current bank be the better option?

Are you considering refinancing your mortgage?

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