Your complete guide to remortgaging your home
Whether you are looking at raising money for home improvements, looking for a better monthly payment than you currently have, or want to restructure the terms of your current loan, we trust you will find this guide valuable.
Remortgaging can help your financial health in many ways. In simple terms, remortgaging involves moving your current mortgage to a new arrangement, arranged either with your existing lender or with a new lender.
It is very similar to the home buying process. That said, as it is not something that you do every day so it is important to ensure you have a clear understanding of the process and your knowledge is up-to-date.
This guide will help to clarify the terminology, benefits, risks and associated costs of remortgaging your property.
There are many questions you will need to ask yourself:
The remortgage market is complex. There are many different mortgages to choose from.
So it’s good to know that, as your adviser, we are on hand to answer your questions. We will help you with the tricky process of not only getting a mortgage, but getting the right mortgage.
We take pride in offering a personal service that takes into account your individual circumstances. Your financial situation is unique, so we work hard to understand your goals and aspirations, and make financial recommendations based on a comprehensive and detailed analysis of your needs.
Our role is to:
Many borrowers choose to review their mortgage every few years in order to take advantage of the new rates on offer. Those that remain on the same deal for the full term of their loan could lose out by paying more money than they need to. They could also miss out on the chance to finish their mortgage term earlier than originally planned.
To avoid moving home
It can be more convenient and cost effective to enhance your existing property, rather than move home. This can be financed by remortgaging or a further advance.
To not lose money unnecessarily
When you took out your current loan, there will have been features that made it competitive and attractive to you. It may be that your incentive period is coming to an end, or simply that the market has changed.
This could allow you to save money on your monthly repayments, or to repay your mortgage sooner. If your current lender doesn’t offer better rates or greater flexibility on its other products, you may want to consider switching your mortgage to another lender. You may be better off doing so, even if this triggers early repayment charges payable to your existing lender, as this could still mean a net saving to you.
To get a lump sum for a special cause
You may have a wedding or education fees to fund. If your property value has risen, you could release some of the equity to help towards this.
To consolidate debts
Remortgaging can allow you to release some of the value you hold in your home and consolidate other debts that can attract higher rates of interest than that of your mortgage (e.g. credit cards).
Think carefully before securing other debts against your home. While debt consolidation often reduces the amount of repayments, making them more affordable, it will normally involve extending the term over which you repay the debt(s), which often results in you paying more for the debt in total.
Think carefully before securing other debts against your home. Your home may be repossessed if you do not keep up repayments on your mortgage.
This communication does not constitute advice and should not be taken as a recommendation to purchase any of the products or services mentioned.
Before taking any decisions we suggest you seek professional advice.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT.
