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Could you be taking advantage of lower rates?
The decision to remortgage is one that should never be taken lightly. If you are looking to remortgage and are currently on the hunt for better rates, then here are some of the steps that you should be aware of.
Information and things to consider
If you are considering remortgaging then please make sure you contact us, so we can take into consideration all your circumstances as well as available deals before offering you impartial advice about which mortgage options are right for you.
In today’s competitive market, many borrowers choose to switch their current mortgage to a new lender or take a new deal from their existing lender every few years or so, to take advantage of the new rates and products on offer at the time.
Remortgaging can help you:
Higher income or a rise in your property’s value means you could increase your mortgage to help pay for major outgoings such as a wedding or your child’s university costs, rather than borrowing from elsewhere, which in some cases can be more expensive.
Avoid moving home
It can be more convenient and sometimes cheaper to adapt or add an extension to your home, paid for by remortgaging.
Reduce your monthly out goings
Remaining on the same deal for the full term of your loan could see you losing out on the opportunity to reduce the total amount paid back, in some cases leading to significant savings.
Consolidate your debts
Remortgaging can allow you to release some of the equity you hold in your home and consolidate other debts, like a car loan or a credit card. This can attract higher rates of interest than that of your mortgage. While this step could reduce your monthly repayments, it may mean that you pay more over the longer term, so you should always think carefully, and professional advice sought.
A change in your circumstances
If your financial circumstances change and you now need a mortgage that can accommodate, for example, higher over payments or a lower monthly rate, remortgaging can get you a deal that better fits in with your lifestyle choices.
But you need to think carefully if you:
Have recently become self-employed
Lenders need to feel safe in the knowledge that you will be able to repay the loan you take on, so they need to know your likely future income. If you have recently become self-employed and haven’t had the time to build up a reasonable track record for your business, then you may find it difficult to get a good remortgage deal.
You need to borrow a high percentage of your properties value
In general, putting a bigger down payment will give you access to better rates. If you own less than 5-10% of your property, you may find it difficult to access better rates.
You need a small loan
Many lenders only accept applications if the loan amount is above a minimum level of approx. £25,000. Fees can sometimes outweigh the small saving on offer.
You currently have high early repayment charges
If you have recently taken out a fixed rate mortgage or a discount mortgage you may find that early repayment charges, make it very expensive for you to take your loan elsewhere in the infancy of the loan. In some cases, these charges can outweigh the savings you would get from switching.
How do I remortgage?
After deciding that you want to seriously look at remortgaging your home the next thing you will need to do is speak to one of our friendly consultants who will walk you through the process.