Remortgaging

Very rarely do you take out a mortgage and stick with the same one for the whole term(which could be up to 40 years), until it is paid off and you’re mortgage-free.Each household is different and there are various reasons why you might look to remortgage perhaps you want to borrow more money or maybe you want to find a better rate and switch.

Here are some other reasons why you might want to remortgage your home.

Current fixed deal is up for renewal
If you took out a fixed rate mortgage where you pay the same amount every month and the interest rate remains the same, once the initial term has ended (it would have been 2,3,5 years), you’ll fall onto a standard variable rate (SVR) where you could end up paying a higher interest rate than you were previously. This is usually the time when you might look to remortgage in order to switch to a better mortgage deal. Our services includes a reminder shortly before this event to give you the opportunity to reduce your payments before they increase.

You want to move from interest-only to repayment
Perhaps you’re on an interest only mortgage and you want to move to a repayment mortgage. Generally speaking, your lender should be able to change this for you without the need to remortgage but if they can’t offer you a competitive deal, then you might consider a full remortgage.

Want to be on a better rate?
You might want to move to a mortgage that has a better interest rate but sometimes the lender requires you to pay an early repayment charge before you can switch. It’s important to weigh up the price of the ear;y repayment charge (sometimes referred to as exit fee or admin fee) against the cost you’ll be saving with the lower interest rates.

You want to make overpayments
Your might have a higher paying job now than you did when you took out the mortgage, meaning you now have more disposable income and can afford to make overpayments, but perhaps your current lender doesn’t allow you to. Therefore, you might want to look at changing over to a new mortgage with a lender who will allow you to make overpayments or pay over a shorter term.

Borrow more money
Moving house can cause a lot of upheaval and can be very expensive by the time you’ve paid for all the fees and moving cost. Choosing to stay put and make home improvements can be a cost effective way of getting the house you’d like. In order to cover the cost of the improvements, whether for an extension, loft conversion etc, you might consider remortgaging to obtain a further advance if your own lender will not. Just be aware that your lender will want to know what you intend to use the money for and may ask to see builder’s quotes etc. as evidence.

We are here to help and would be delighted to work with you, if you would like to arrange a no obligation review please call us on 01924 566010