Refinancing a mortgage means transferring it from your current bank to another bank that will usually offer you better terms. You pay off your existing mortgage with your bank with a new mortgage with another bank.
For most banks, you can refinance your mortgage 12 months before the end of the fixing period, but there are banks on the market that offer refinancing even 24 months before the end of the fixing period.
How do I refinance my mortgage?
Not only when choosing a new home, it is worth comparing mortgage interest rates. There is a reason for this even before the end of the fixation period. You can get a better interest rate or other benefits and save a lot of money.
However, in order to refinance, you need to keep an eye on the end date of your mortgage and check the terms of other banks before it expires. You don’t have to worry about any penalties or interest charges, just give your current bank at least 30 days’ notice.
Did you know that by law you can pay off your mortgage at any time, even outside the fixing period? But then you have to take into account that the bank may charge you for so-called “reasonable costs” related to early repayment of the home loan, such as administrative costs, salary costs of the employee who handles your application, land registry fees, etc.
When to refinance my mortgage?
At least 2 months before the end of the fixing period, start looking at the current mortgage offers on the market. You can also compare them online, right from the comfort of your home. Once you have decided to refinance, ask your existing bank to quantify the loan balance, get the new bank to agree to the second charge and also get a promise to clear the mortgage on the property from the land registry.
Did you know that if you use hyponamiru.cz online mortgage banking, you will always have an overview of the stage of your mortgage refinancing? In addition, you can also sign the online refinancing application by SMS. Then you just go to the bank to sign the newly approved mortgage.