Remortgaging

The most suited mortgage when you first bought your home may no longer be suitable for your needs. A BeAdvised mortgage adviser can help you avoid paying more for your mortgage than you need to.

Think carefully before securing other debts against your property. Your home may be repossessed if you do not keep up repayments on your mortgage

What is a remortgage and why do people remortgage?

A remortgage is when you take out a new mortgage from a new lender to repay your current mortgage; typically, this is done at the end of your existing mortgage’s ‘product’ period.

An example of this for a fixed rate mortgage would be when the fixed rate period ends and the rate of interest charged moves onto a lenders ‘standard variable rate’

Why should I consider a remortgage?

The most common reason for remortgage is simply to ensure your mortgage still fits your requirements, and you’re not unnecesssarily paying too much, although it does represent an opportunity to:

Review your mortgage term

If your circumstances have changed then you may now be able to afford to take on higher monthly payments and repay your mortgage at a quicker rate or, alternatively, stretch the payments out over a longer period if needed.

Switch your interest only mortgage to a repayment basis

A choice you made at the outset of your mortgage but you may want to now change it.

Review your mortgage product

There are many different types of mortgages, some offering greater flexibility than others. Or if knowing what you are paying each month is important to you, Mortgages are available that have fixed rates for periods of between 2 and 10 years. Getting expert mortgage advice can help you understand these choices and recommend the best solution for you.

Raise capital

If you have sufficient equity in your property you may be able to raise additional funds for home improvements, debt consolidation, purchase of additional property, to help family members or other personal reasons. Adding to the size of your mortgage is something that should be carefully considered as it will result in more interest being charged over it’s lifetime.

What are the costs?

There are costs involved with a re-mortgage, but to remain competitive, lenders often offer to pay for the legal work and the valuation to attract your business. BeAdvised help you understand any costs and help you compare the potential savings against your existing mortgage as well as alternatives to give you confidence in your decisions. Details of our typical fee for advising and arranging your remortgage can be found here.

Can I just switch deals with my existing lender?

More and more lenders are offering existing customers options to remain with them through a ‘product switch’ and many borrowers see this as a good option on the expiry of their existing product as it can be simple and quick. It may be that staying with your current lender is the suitable option but in a lot of cases borrowers may have chosen to do this when they could have saved money elsewhere.

A BeAdvised mortgage adviser can help you consider this option and the alternatives so you can be sure you have made the right choice.

Can I just switch deals with my existing lender?

This is not a simple answer as it is dependent on a number factors. Get in touch with our Swindon based mortgage adviser and we can help you identify when you should consider your options.

In most cases, this would be when your existing product ends; however, there may be opportunities 3-6 months before the end of that date, depending on the lender. There are also examples where borrowers may have far longer left on their existing product deal, they may have a low ERC (early repayment charge) but are paying over the odds on their interest so remortgaging early may result in a saving.

There is no wrong time to have a conversation about your mortgage as it is likely to be your single biggest expense. We are always available to discuss your circumstances so would encourage you to get in touch to see if we can help you save money by remortgaging.

Want To Find Out More?

Fill out our contact form, drop us an email or give a call and speak to one of our advisers to see how we can help you today.