Question 1

Should I refix or refinance?

Accepted Answer

Refixing means agreeing a new rate and term with your current lender. Refinancing means applying to move the lending to another lender. The right option depends on the terms offered, your equity, costs and plans.

Question 2

What is a break fee and will I have to pay one?

Accepted Answer

A break fee can apply if you change a fixed loan before the term ends. It is calculated by your lender and can change with the loan details and market conditions. Ask for the actual figure before you make a decision.

Question 3

How long does it take to move lenders?

Accepted Answer

The timing varies with the lender, the application documents, valuation requirements and legal process. An adviser can explain the current steps after reviewing your situation.

Question 4

Does it cost me anything to use an adviser?

Accepted Answer

Guardian Smith’s mortgage advice is provided at no direct adviser fee to you. Guardian Smith is remunerated by lenders, with the detail set out in its disclosure.

Question 5

Can I do this before my term ends?

Accepted Answer

You can start asking questions before your term ends. Whether a change makes sense before then depends on your loan terms, any break fee and the full cost of your available options.

Question 6

What if my property has gone down in value?

Accepted Answer

Your available equity may affect the options a lender will consider. An adviser can help you understand what information a lender may need and which questions are worth asking next.

Refix or refinance?Check the offer first.

Refix or refinance?
Check the offer first.