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Mortgage Refinancing Help
: Business: Financial Services: Banking Services: Credit Unions: Regional
: United Kingdom (6)
 If you plan on moving out of your existing home within the next few years, it may not be beneficial for you to refinance. Make sure you let your mortgage specialist know your future plans.
 See also:
 Leeds City Credit Union »
Includes background information, membership, savings and loan services and an application form for download. Open to anyone who lives or works in the Leeds Metropolitan District.
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 Burnley Area Community Credit Union »
Financial services for the borough of Burnley, Lancashire, offering savings schemes and low cost loans to members. History, structure, collection points, news and events.
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 Worcester Black Pear Credit Union »
Offers savings and loans to anyone who lives or works in the Worcester area. Features location, business address, opening times and institutional overview.
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 Credit Union Scottish Transport »
Based in Glasgow, it serves Scottish transport industry members and features information on membership, forms, money matters, services and benefits.
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 Blues and Twos Credit Union Ltd »
Offers credit union financial services to staff and families of Lancashire and Cumbria Police Forces in Preston, Lancastershire.
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 Glasgow Licensed Taxi Trade Credit Union »
Cooperative financial services for the Glasgow taxi industry (owners, drivers and their families). Offers savings, loans and insurance.
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 It's better to follow the 2% Rule which suggests that you can enjoy the benefits of a home refinance if your mortgage refinance rate is 2% lower than that on your current loan. The interest savings will help you recoup the costs you've paid for the new loan provided you stay in the property for a certain period of time (break-even period). However, there are no-cost as well as low-cost refinance loans wherein the costs are included into the loan. But you can expect comparatively higher rates on such loans. Moreover, these loans are limited when the market is in a credit crunch.
When it comes to lowering your rates you will need to weight the benefits of having a lower rate vs. paying points up front. You may end up paying a lot more depending on your choice and how long you plan on keeping your mortgage.
Make sure that your original mortgage does not have a pre-payment penalty or early payoff penalty of any kind. Sometimes people will get into their mortgage with the mortgage having a pre-payment penalty and they will not even know about it. Pre-payment penalties usually range from 6 months to 3 years with a penalty for an early payoff. The penalty is usually about the amount of 6 months worth of your mortgage loan interest, but this varies. You would have to be able to have some significant payment and interest savings on your refinance loan to justify refinancing a mortgage loan with a pre-payment penalty.
Weigh the costs carefully of how long you will be staying in your home vs. how much of a savings you will be getting in a refinance. Make sure you include closing costs in your decision.
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