Help With Remortgaging
Why Consider Remortgaging?
- to save money on your monthly repayments
- to switch to a more flexible mortgage or
- to release equity from your home.
Important Things to Consider - Before Remortgaging
There will be costs involved with remortgaging that you will need to take into account for example, your current provider will likely charge an exit fee and you will need to pay your new provider valuation and set up fees.
If you are currently in a fixed rate deal, you will have to pay your lender an early repayment charge (ERP) if you wish to leave before the end of the deal. This is normally a certain percentage of your mortgage balance, depending on how long you have left.
Recent changes to regulations regarding the way people are assessed for mortgage applications mean you may not necessarily be accepted by another lender. This may also happen if your financial or employment status has changed since you first got your mortgage.
If you decided to release equity from your property you will be increasing the amount you are borrowing and will therefore see a rise in your mortgage payments. It is possible you will also see an increase of interest rate as your loan to value (LTV) will have decreased.
Thinking of remortgaging to consolidate debts or pay for a project? Make sure you do your sums carefully. Mortgages may have relatively low interest rates in comparison to credit cards or loans for example but borrowing over a long period of time may cost a lot more in the long run.
When should I think about Remortgaging?
Coming to the end of your current deal
If you chose a fixed interest rate deal when you first took on your mortgage, it will have been for a set amount of time (usually between 2 and 5 years). When this time period is about to come to an end, it is time to start searching for a new deal.
On a Standard Variable Rate (SVR)
When your fixed deal ends you will normally be moved onto your mortgage provider’s SVR. This may be higher or lower than what you were paying before and will change in line with the Bank of England base rate. If you are on a SVR, you may be able to save money by moving to a fixed deal.
Property has significantly increased in value
If your home has gone up in value a lot since you got your mortgage or last had it valued by your mortgage provider, it could be possible for you to get a better deal. If the new value of your home takes you into a different loan to value (LTV) bracket you may be able to get a lower rate of interest.
Need a more flexible mortgage
Sometimes the mortgage you originally signed up for no longer meets your needs. Maybe your circumstances have changed and you require a mortgage that will allow you the occasional payment break or you wish to make a regular overpayment without being penalised? There are many different mortgages out there which may suit your requirements.
You require equity from your homeIf you have enough equity in your home, it may be possible to remortgage your home in order to release some. Your lender will require you to provide a reason for remortgaging in this way for example, to consolidate debts, redecorate or remodel your home, build an extension or use the money to invest elsewhere, for example buy to let.
Near the End of Your Current Mortgage Deal?
Find out what options are available and see how much we might be able to save you on your mortgage payments. Many more UK homeowners are remortgaging to save money on their regular monthly repayments. How much could you save?
Remortgaging Your Home
Remortgaging may not be the right option for everyone. The Mortgage Hut will assist you to decide whether changing deals will exceed the expense.
As with all mortgages, there are a multitude of remortgage options on the market. The Mortgage Hut can quickly compile the options available and help you to select the precise remortgage which best meets your individual scenario.
- A remortgage usually involves moving your mortgage to a new lender, this may mean a more competitive rate of interest which could also reduce you mortgage repayments.
- By finding lower mortgage rates, remortgaging can lower your current mortgage payments. If your home has risen in value, remortgaging can also enable you to utilise the additional equity in your house. By switching from the lender's standard valuable rate to a new rate can offer a saving.
- Equity released from your property can be used to settle debts, remodel, or allow you to consider a buy to let home by providing the finance required.
- Note: You may have to pay an Early Repayment Charge to your existing lender if you remortgage.
How Can a Mortgage Broker Help with Remortgaging?
Contact The Mortgage Hut Team of Experts
Remortgaging may not be the right option for everyone. A qualified mortgage adviser can help you weigh up the cost and savings involved so you can decide if it’s right for you.
Mortgage brokers have access to a wide range of different mortgages from various mortgage providers. From large banks to small specialist loan providers, we can search through the thousands of deals available on the market.
- Using a mortgage broker saves you the stress and hassle of trying to compare and contrast multiple deals each with different interest rates, arrangement fees and restrictions.
First Time House Buyer?
Looking for the most suitable deal on your first time buyer mortgage -contact us.