Remortgages

Remortgages are available for people who either want to change their existing mortgage or to borrow more against the property for whatever reason, be that home improvements, holidays etc.

Depending on the original mortgage, a remortgage can literally save thousands of pounds. You may be locked into a fixed rate that is no longer competitive and you will be paying more a month in repayments than you actually need to, or your circumstances may have changed which mean that you are now in a stronger position to qualify for a more attractive and competitive mortgage. Another reason to remortgage is that a fixed interest rate deal is about to come to an end and you may want to fix a rate with another lender to save money when your current mortgage rate increases. Fixed rate mortgages usually last for between 3 and 5 years so it is not unusual for people to shop around and remortgage after these deals end.

Other reasons for remortgages include your loan to value ratio has risen significantly, as repayments have been made and the property value has increased. This would give you more bargaining power to attract a more competitive mortgage deal. You may want to pay more of your mortgage off but your current deal will not allow this, which may be a good reason to remortgage also. Or perhaps, quite simply you want to borrow more and this is not available from your current mortgage company.

Remortgaging is not the huge task that it was perceived to be many years. Remortgaging or switching mortgages is relatively straight forward now and finding the right mortgage product is less daunting than it used to be,. Many home owners are in good control of their finances and recognise that it can be a buyers market, so they are happy to remortgage a number of times throughout the duration of their property purchase, maximising lower interest rates and fixed term deals.

There are certain occasions when it perhaps doesnt make sense to remortgage. For example, if the outstanding mortgage is relatively low then the charges incurred in remortgaging may outweigh any savings that can be made. There are occasions when early settlement of a mortgage may incur charges. These need to be calculated to ensure that any potential saving made by remortgaging would we beneficial. Also, if your personal circumstances have changed, for example if one of you no longer works then the mortgage company would need to have evidence of income that may no longer exist. Better perhaps to stay put.

Whatever your remortgage requirements, get in touch and we can offer friendly impartial advice that most suits your current circumstances.