A remortgage is where you take out a new mortgage on a property you already own – either to replace your existing mortgage, or to borrow money against your property.
A remortgage can be for many reasons. Are you coming to the end of your current mortgage deal, or currently on your lenders Standard Variable Rate (SVR)?
THINK CAREFULLYBEFORE SECURING OTHER DEBTS AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE OR OTHER DEBT SECURED AGAINST IT.
Securing short term debts against your home could increase the term over which they are paid and therefore increase the overall amount payable.
Many borrowers could save money on their mortgage but simply don’t get around to switching to a new deal. Maybe your current deal is no longer right for you, or you want to try to cut costs, or consolidate debts?
Reasons to remortgage are usually:
Current deal coming to an end
If your current deal is coming to an end, you need to review your mortgage and your options. Otherwise you could end up reverting to the lender’s Standard Variable Rate (SVR), which currently, is often more expensive than other mortgages that maybe available (see “To get a better deal” below).
To get a better deal on your existing loan
You could save money by switching to a lower interest rate than you are currently on. You could be paying hundreds of pounds more a year than you need to. We can review your current mortgage deal and tell you if it can be beaten and if it is financially worth while switching, taking into account any costs involved in the process. The potential savings from switching your mortgage can be substantial – for someone with a typical £150,000 mortgage, cutting 1% off their interest rate could save £125 a month or £1,500 a year, so being on the wrong rate could be costing you a lot of money. It is definitely something worth thinking about.
To Consolidate Debts*
You may want to reduce your monthly outgoings by consolidating your debts into a single affordable monthly payment. Debts like an overdraft, credit cards, store cards and personal loans, are likely to have higher interest rates than your mortgage. You can remortgage to increase the size of your mortgage and use the extra money to repay your other debts.
To release some equity from your home
You can remortgage for more than your current mortgage and take out some of the equity from your home in cash. You can use this cash for any legal purpose, e.g. home improvements, a deposit for another property, etc.
A different mortgage package may suit you better
Perhaps you want to fix the interest rate you pay. You may be on a variable rate mortgage now and would prefer to switch to a fixed rate to give you some security or protect yourself if interest rates rise.
The remortgage process may sound confusing and time consuming for some, but that’s where Hadley-Clarke Mortgages can help. Care needs to be taken when remortgaging. You have to consider factors like if you would have to pay a penalty or Early Repayment Charge for leaving your existing lender, etc. It’s easier than you think when you’ve got help. We can search for the right mortgage for you and help you throughout the process, from application to completion.
We have access to many lenders that offer a free survey and free legal fees to reduce the cost of moving your mortgage to another lender.