Reasons to Remortgage

9 Great Reasons to Remortgage

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.

These are just some of the great reasons to remortgage. Get in touch with our team for plenty more reasons. Contact our team on 01604 877999 to speak to one of our advisors.