How to Renew Your Mortgage

Written by stephen benham
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How to Renew Your Mortgage
Size up your budget before renewing your mortgage. (mortgage image by hans slegers from

There are times when you need to consider renewing your mortgage. You might need to refinance due to changes in circumstances, release equity or extend your home. Perhaps you want improved terms and conditions. If you have made your repayments on time and possess a reasonable credit record, renewing your mortgage is straightforward.

Skill level:


  1. 1

    Work out your budget. You need to know that you can comfortably make the repayments when renewing your mortgage. You know your current running costs. Take everything into account.

  2. 2

    Renew your mortgage with your existing lender or shop around for a new deal. The market is competitive. Get a quotation from your current lender and then compare it with other companies. You can do this on line, by telephoning or visiting a lender in person. Use the services of a broker. Brokers use a panel of companies, so you can get quotations from several in one place, making comparison easier.

  3. 3

    Make a list of three or four lenders, including your existing one. Make appointments to meet. Question the lenders about interest rate options. Fees and charges should be discussed. Check the full terms and conditions. Let each lender know you are looking around. Negotiate terms with them. Lenders are more likely to be receptive to negotiating if you make it clear there is competition. Remember, you are buying a product. Lenders are selling it.

  4. 4

    Select the lender offering the best overall package. It may not just be interest rates: fees, charges and early redemption costs can be important when renewing your mortgage.

  5. 5

    Complete the application forms. Provide the required documentation. Mail to your preferred lender and wait for your mortgage to be renewed.

Tips and warnings

  • Get your FICO (Fair Isaac Corp.) credit score for free when you apply to renew a mortgage. The FICO score is the one used most by lenders when assessing your suitability for credit. Ask your lender for your score: It’s not automatically given (see Resources).
  • Be diligent when searching for home finance. Many websites suggest exceptional offers but do not comply with the law (see Resources for a link to the Federal Trade Commission website).
  • Mortgage brokers don’t have to find you the best deal unless you have contracted with them to act as your agent.

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