Remortgage

In all likelihood, you and your home are going to be together for a long time, but that needn’t be the case for the Lender. Switching mortgage products or Lenders to always ensure you are paying a competitive rate and have the product and mortgage that is right for you, makes financial sense. It can help you to raise cash for home improvements or just free up some capital for other uses.

Remortgaging may be the answer. There are lots of reasons to remortgage your home – from reducing your monthly payments to freeing up some cash for those vital home improvements. People do this every day – and with our help, you can rest assured that you’ll find the right mortgage to suit you.

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Why should you remortgage?

For a better deal

LTV stands for loan-to-value. This simply means how much of the price of your home comes from a loan and how much comes from your own money. So, if your property is worth £300,000 – and you have £100,000 as a cash deposit – your mortgage will be £200,000, or 66% loan-to-value.

Put simply, the lower the LTV, the better your mortgage rate – and if you’ve been making regular payments against a capital repayment mortgage, your LTV will now be considerably lower than when you started.

A lower LTV will unlock some of the more competitive mortgage deals which are available, reducing your monthly payments as well as the overall sum you’ll pay back. What’s more, we can help you to find these deals. Give us a call to chat through your options.

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remortgage

To reduce or extend your mortgage term

Earning more than you used to? You may want to put this extra income to good use by reducing the term of your mortgage. If you currently have a 25-year mortgage, you may find that reducing the term by even a few years can drastically reduce what you have to pay back overall. To work out how much you could save, use our mortgage calculator.

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For debt consolidation

If you have substantial debt from credit cards, loans or finance agreements, you might be better off remortgaging your home to consolidate your repayments. It’s likely that you’ll pay less interest this way and you’ll be able to spread what you owe over a longer term, making the monthly repayments that little bit more affordable. Remember, it isn’t always about lower monthly cost. If you extend the term of the repayments you could be paying more in the long run. Speak to us and we will help you decide the best route.

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For home improvements

Making home improvements – however small – will almost certainly add value to your property. When you sell, larger home improvements – such as loft conversions or adding an extra bathroom – can generate a return and make your home more desirable and saleable. But finding the start up cash to do the work can be tricky – which is why remortgaging your home may provide a good solution.

How soon can you remortgage?

Before you even begin the process of remortgaging, it’s best to look into whether your current provider has an early repayment charge – bear in mind, most lenders do.

For the best deal, you should also wait until your LTV has reduced – this will give you access to some of the more competitive mortgage rates which are available. How do you know when this will be? Get in touch and we’ll be able to talk you through your options.

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Remortgaging: Fee free vs paying your costs

Some lenders offer fee free remortgage services as part of their incentive package for you choosing them. Whilst this can save on legal fees, arrangement fees and valuation costs, this should be balanced out against the interest rate charged and a true cost comparison with other lenders.

Bear in mind that many lenders will give you the option to select their services and pay their fees, in return for what is often a lower interest rate. Whilst fee free remortgages may look attractive, there may be better alternatives. For advice that’s tailored to your situation, just speak to us.

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Pound-for-pound remortgaging

As long as you choose a pound-for-pound remortgage and the terms of your agreement stay the same, you should be able to directly compare the new monthly mortgage payments with those of your current lender.

To help you weigh up your options, speak to mortgage advisor. We’ll be able to guide you through all of your options and our advice could even save you money.

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