Remortgage

Remortgaging, put simply, is moving your mortgage from one lender to another without moving home.

Most people remortgage to get a better deal, although there are a number of different reasons people decide to remortgage, one or more of which may apply to you.

1. Save Money

Interest rates can move up and down regularly so you may find that your current deal is no longer as competitive as it was when you initially took it out, so finding a new mortgage deal could help to reduce your monthly payments. Usually people wait until the end of their current deal before remortgaging, but this doesn’t have to be the case. You can remortgage during the term of your current deal if this makes financial sense. However, you must bear in mind that remortgaging isn’t always a free process; your current lender may charge an exit fee, as well as an early repayment charge if you decide to leave early, and you may incur costs when setting up your new deal.

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2. Home Improvements

For some people, remortgaging is a method used to free up some equity in their property to help pay for things like home improvements. Rather than packing up and moving to a bigger house, lots of people add space and value to their current homes with extensions and refurbishments. So, remortgaging can release some cash to help pay for these.

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3. Consolidating Debts

You may want to reduce your monthly outgoings by consolidating your debts into a single affordable monthly payment. If so, we can review your finances and make suitable recommendations in the form of a secured loan or further advance on your existing mortgage. When consolidating debt, a reduction in monthly payments is likely to mean an increase in the debt and overall term.

THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME top

4. Capital Raising

Higher income or a rise in your property’s value may mean that you can increase your mortgage to help pay for major costs, such as a wedding or your child’s University costs, rather than borrowing separately. Often, borrowing this way can be less expensive than other means but remember, the borrowing is secured against your home. Many people see property as a good long term investment and are also using the equity within their homes to help fund the purchase of a second, or subsequent, property to let.