A Number of Good Reasons to Remortgage
There are a number of reasons why you may be interested in remortgaging your property.
To Save Money on Monthly Payments
Your mortgage payment is likely to be your biggest outgoing each month so offers good potential for saving money. The bigger your mortgage, the more money you could save - those with large mortgages have the possibility of saving thousands of pounds per year.
You Want to Borrow More Money
Remortgaging can be a financially viable way of borrowing money for other purposes as long as you have enough equity in your home. You may wish to release money from your Winchester home to refurbish or remodel your home or pay off other debts.
Your Home Has Rapidly Increased in Value
If, like many Winchester properties, your home has seen a large increase in value in recent years, then it may be worth finding out if you could make savings on your mortgage. A higher valuation could put you in a lower Loan to Value (LTV) bracket which typically comes with a better mortgage rate.
You Want More Flexibility
Are you finding your current mortgage too restricting? Some mortgages may allow bigger overpayments for example, allow you to take a payment holiday or make underpayments. The Mortgage Hut can help you find the perfect mortgage for your situation.
When Should I Remortgage?
Ideally you would remortgage when your current mortgage deal has come to an end or you are already on your lender's Standard Variable Rate (SVR). It is possible to remortgage when you in a fixed rate deal however you will have to take into account your Lender’s Early Repayment Charge (typically between 2% and 5%) when working out any savings.
Is Remortgaging a Good Option for Me?
It’s not always an easy decision whether to remortgage or not, but in the end it comes down to your personal circumstances and doing your figures right. The key is to look very carefully at any costs associated with a remortgage including early repayment charges (if in fixed rate) valuation fees and possible arrangement/admin fees and ensuring that they don’t outweigh the possible savings.
Whatever your situation, The Mortgage Hut can help you look through your options when it comes to remortgaging your Winchester home. It can be hard to compare and contrast the different options available and it’s also important to take into account any changes in your financial circumstances since you applied for mortgage (such as reduced hours, changing occupation or becoming self-employed) which could affect future borrowing. A mortgage adviser from The Mortgage Hut can give you all the help and advice you need.
- You may have to pay an Early Repayment Charge to your existing lender if you remortgage.
- Your home may be repossessed if you do not keep up repayments on your mortgage.
- There will be a fee for mortgage advice. The actual amount you pay will depend upon your circumstances. The fee is up to 1% and a typical fee is 0.3% of the amount borrowed.
- The guidance and advice contained in this website is subject to the UK regulatory regime and is therefore restricted to consumers based in the UK.
- Please note that The Mortgage Hut is not responsible for the accuracy of the information contained within any linked sites accessible from our website.
To find out if remortgaging could help save you money or release needed funds, call into our Winchester branch located at Black Swan Buildings in Southgate Street.Interested in remortgaging but not located in Winchester? The Mortgage Hut have branches located throughout the Southeast, come and find out about our branches. You can also speak to one of The Mortgage Hut’s professional mortgage advisers over the telephone by calling: 0300 303 2640.