The best remortgage for a home owner is one with a low interest rate. The key to choosing the best remortgage is simply comparing the interest rates of different lenders. However, being the position of remortgaging a home owner has an advantage. They can negotiate with their lender to get a good deal.
The first part of negotiation for the best remortgage is getting a starting idea from the current lender. The home owner should discuss their remortgage options with their lender and ask what they have to offer. At this point the home owner tells the lender thanks for the quote and then starts to shop around.
The home owner should look at various other lenders and gather quotes for their best remortgage. They are looking for the lowest quote, preferably lower then their current lender. Once they have found the lowest rate possible they are going to go back to their current lender.
At this point the home owner has the upper hand. Their lender does not want to lose their business and they know the only way to keep it is to match or beat the lowest quote they got. They understand the home owner is only trying to save money. At the same time, they are trying to make money, so it can take some hassle.
The lender may offer other deals, so it is important that the home owner makes it clear that the deal breaker is the interest rate. As long as the other quotes follow the same general lines of the original mortgage this is the best step.
However, if the other quotes tack of fees or other costs then the lender will grab onto that and try to win the deal that way. That is why it is important to get quotes that are exactly the same as what the home owner is trying to negotiate with the current lender.
During the negotiations the lender will either cave and give the home owner the interest rate he wants or they will say they can not do it. If they agree then the remortgage can proceed. However, if they can not meet the lowest rate then the home owner needs to go to that lender to start the remortgage process.
Getting the best remortgage is all in the hands of the home owner. Lenders are not going to jump at the chance to provide rock bottom interest rates at first. By negotiating and shopping around, though, the home owner gets the upper hand and they can force their current lender into going with a lower rate.
The reason this works is because the current lender does not want to lose the home owners business. However, other lenders are more than willing to offer low rate to gain the home owners business.
Staying with the original lender, though, has its perks. It enables the process to be much quicker and easier. Plus the home owner already has an established relationship with this lender. However, in the end the only thing that really matters is saving money and getting the best remortgage rate.