Are You Considering a Remortgage?
A remortgage is the process of switching your mortgage from one lender to another, or from your current lender to a new mortgage product with the same lender.
As a mortgage broker, we often get asked questions about remortgages, what are the benefits and why you should use a mortgage broker.
What Is a Remortgage?
A remortgage is the process of replacing an existing mortgage with a new one. This commonly occurs when you have come to the end of your current fixed rate to avoid going onto your current mortgage lenders higher interest rate know as the standard variable rate.
When Should You Remortgage?The best time to remortgage is when you are coming to the end of your current fixed rate period. You can secure a new rate with most lenders 6 months in advance. If you do not remortgage you will end up on the current lenders standard variable rate and as a result will be paying a higher monthly payment than you should be. You can also remortgage during a fixed period, however you would be subject to early repayment charges.
Reasons to RemortgageThere are several reasons why you might want to remortgage, including: To secure a new mortgage rate To raise funds for home improvements To raise funds to clear some debt
Speak to an Expert!
Contact us today for expert advice and guidance on your unique mortgage and property needs. We will work with you on a one-on-one to basis to help you find the right solution for your needs.
With our experience you can rest assured that you are in good hands when it comes to securing the financing you need for your property.
Should I Remortgage With My Existing Mortgage Lender?
It is always worth shopping around when your mortgage is up for renewal. Mortgages are no different to broadband or mobile phone contracts, when your fixed contract ends its time to look for the best deal.
It can be really quick to remortgage with your existing lender, but you could be missing out a better deal elsewhere. Unfortunately not all mortgage lenders offer their best rates to existing customers. Speaking with a whole of market mortgage broker can assist in finding you the best deal in seconds.
Is it Easier to Remortgage With Your Existing Lender?
It is much quicker to remortgage with your existing lender, but in most cases it will be more expensive to do so. Not all mortgage lenders offer their best rates to existing customers. The mortgage market is very competitive and you could save money by taking the time to switch to a new mortgage lender.
Is It Sensible to Remortgage?
Yes a remortgage is always a sensible option if your current mortgage is coming up to its renewal date. A remortgage to a new product will always save you money when compared to your existing lenders standard variable rate.
If you are considering remortgaging part way through your current fixed rate period, we would suggest speaking with a mortgage broker before making a decision, as they can help ensure you make the most cost effective decision.
What Is the Earliest You Can Remortgage?
As a general rule, the earliest you can remortgage is 6 months in advance of your fixed rate period ending. Any earlier and you could have to pay an early repayment charge.
Securing a rate in advance allows you to lock in a rate which then cannot be affected by rate rises. If rates drop you can change the terms to the better rate.
If you are on a tracker mortgage it is likely you will have no penalties to remortgage and you could do it at any point, but we always recommend checking your mortgage offer to find the exact terms and conditions.
Can I Remortgage With a Poor Credit Score?Yes it is certainly possible to remortgage with a poor credit score or bad credit, however it is unlikely you will be able to access high street lenders or the best mortgage rates as a result. Using a mortgage broker is essential to finding the best mortgage for you.
Can I Pay Off Debt When I Remortgage?Yes you can remortgage to raise funds to pay off a debt. However you need to have enough equity in your property to be able to do this. Most lenders restrict the borrowing to 85% LTV. Some lenders may go higher than 85% but speaking to a mortgage broker can make the process much easier.
Can I Borrow More Money On My Home Without Remortgaging?Yes, you can borrow more money on your mortgage without remortgaging. This is called a further advance and can often be done through your existing lender.
How Much Money Can I Borrow When I Remortgage?The amount of money you can borrow when you remortgage will depend on several factors, including your income, the value of your property, and the lender’s criteria. It is important to speak with a mortgage broker to determine how much money you may be able to borrow.
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