What Does it Mean to Remortgage?
A remortgage is when you change from one mortgage deal to another. This could mean sticking with your current lender or switching to a new one. Where it gets a bit more complicated is knowing if remortgaging is right for you, as well as if your circumstances mean you can remortgage:
You can remortgage at any time. But there is no point remortgaging unless you are going to see positive benefits from switching mortgages or lenders. This is why the decision on whether to remortgage your home needs careful thought and to be informed by expert advice from a mortgage adviser.
The advantage of a remortgage is it may reduce the size of your loan as well as allow you to switch to a cheaper interest rate. Reading these benefits, you may think, why shouldn’t I remortgage? Well, it’s important to be careful. Because certain mortgage agreements feature early exit fees and other possible charges related to remortgaging. This is why it’s important to understand whether you should or shouldn’t remortgage:
Reasons you should consider remortgaging:
· If your current deal is about to end and you want to find a better interest rate.
· The value of your home has increased by a large amount
· You want to make overpayments
· You want to switch from interest-only to a capital repayment loan
These are some of the reasons why you should consider remortgaging. An example of a scenario where this may be valuable is if your initial term has ended and your interest rate has become a standard variable rate. This could mean you are paying more than before. Clearly an ideal time to remortgage.
Many people may try to remortgage their property without understanding their current deal and their possible new deal. To find out if remortgaging is a sensible financial decision it is crucial you:
Mortgage advisers are fully qualified specialists in both the mortgage and property market. A mortgage adviser can help you work out the possible savings you may see from remortgaging your property, allowing you to see if it is worth it.
They can also examine your existing mortgage deal. This means they can tell you if there are any early-exit payments or charges. Your current mortgage agreement may feature a fee-free deal to try and tempt you into remortgaging with your same lender.
Evaluate all your options and work with a mortgage advisor to find the right remortgage deal for you. And if you find you can benefit from remortgaging then this is how you remortgage your property:
The first step towards finding the right remortgage rates for you is making a mortgage enquiry. This will put you in touch with a mortgage adviser who can review your information and give you personalised advice. They can then discuss your different lenders and scheme options. So, get in touch today:
If you want personal and professional mortgage advice give us a call today. You can call us on01604 300033.Or fill in the enquiry form on our contact page today.
A MORTGAGE IS A LOAN SECURED AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE OR ANY OTHER DEBT SECURED ON IT.
YOU MAY HAVE TO PAY AN EARLY REPAYMENT CHARGE TO YOUR EXISTING LENDER IF YOU REMORTGAGE.