A mortgage is arguably your biggest financial commitment and streamlining the rate that you are on, has the potential to save you a lot of money. Here are our top reasons to remortgage.
Why might I want to re-mortgage?
- My fixed rate is coming to an end and my payments are set to rise when I switch to the lender’s variable rate.
- My situation has changed and I’m looking for a deal which is better suited to my needs. This could be for one of many reasons – your income may have improved, and you believe you are eligible for a better rate than you are currently on, or you wish to make overpayments and your current mortgage won’t allow these. You may be wishing to start a family and with impending leave on the horizon, you want greater flexibility with the option of payment holidays.
- My ‘Help to Buy’ 5-year interest free period is coming to an end and I want to repay some or all of the equity loan.
- I want to release some of the equity for home improvements or to raise a deposit for a second property.
- I’m worried about interest rate rises and want to secure an interest rate for a fixed length of time to avoid the impact of economic change.
- I want to borrow more and move to a new house, but I am tied in with my current lender.
- The value of my house has increased, and I want to benefit from a better interest rate.
- I want to reduce my mortgage term in order to retire sooner.
What could be the potential benefits?
- Borrowing at a lower interest rate
- Reducing the term of the mortgage
- Incentives such as free legal services and cashback are offered by some lenders
- Consolidating debts
- Paying off your Help To Buy Equity Loan
- Releasing funds from the equity in the property
- Borrowing more
- Increased flexibility
- Lower monthly mortgage payments
The Savings can be SUBSTANTIAL. A £200,000 mortgage over a 25-year term on a capital & interest basis on an example interest rate of 4%, would cost £1,055 per month. If this interest rate was reduced to 2% it would drop the monthly cost to £848 which is a saving of £207.00. Over the course of the year this would equate to a total saving of £2,484.
When should I approach a mortgage advisor about re-mortgaging?
We can start discussions with you and look into potential deals as early as 6 months before your current deal is due to expire.
How much is it likely to cost me?
- We do not charge the client anything to have a consultation, which is done at our own expense and is completely free of obligation. If a client does decide to proceed with a transaction there will be an administration fee payable of £150 payable on application, which gives you access to our intermediary only exclusive mortgage deals, a dedicated mortgage broker to advise you and an administrator to help progress your application to offer and beyond.
- Fees and charges from the lenders may vary and will be discussed with you fully on presentation of our recommendation.