Remortgage – What is it and why should I?
What is a remortgage?
A remortgage is when you move your mortgage from one provider to another on your existing property. Or you raise a new mortgage on a property you already own that was previously mortgage free. A remortgage should not be confused with a product switch or product transfer which means you are simply changing the type of product (a new fixed rate, for example) you have with your current lender. More information on these can be found here.
The main reason most clients give for wanting to remortgage is to save money. Due to historically low interest rates, many of my clients are coming to me to discuss moving their mortgage to a new lower and longer-term fixed rate in order to take advantage. We are regularly helping our clients to save significant amounts of money per annum, compared to staying with their existing lender.
By remortgaging to a new lender, you can also take advantage of lots of deals in the market that offer a free valuation and/or free legal fees and sometimes even cashback incentives too. This means that it won’t cost you the earth to move your mortgage to a new provider and potentially this could save you money overall when compared to a product transfer with your current lender.
Current deal is about to end.
If you are approaching the end of your fixed rate or you are looking to save money on your monthly repayments, then get in touch so we can look at the options available to you and see what we can offer. Clients can sometimes move from a fixed or tracker rate deal onto the lenders Standard Variable Rate and be paying far more than they should when compared to other rates in the market. We recommend that clients start to look into their options as much as up to 6 months before the end of a current deal. This means that they can take advantage of any savings to be made as soon as possible. Some lenders may even allow you to move from one product to another early without paying any penalties. This would normally be a product transfer and more information on these can be found here.
This can be for a variety of reasons and I have a separate blog about this topic which you can find here.
To summarise, this can be for a holiday or new car, debt consolidation or home improvements, for example.
Worried that interest rates may go up.
Due to the current financial climate caused by the COVID-19 pandemic and Brexit clients feel that interest rates may be going up in the near future. We can secure 2, 3, 5 or even longer fixed rates that will give them the peace of mind they are seeking.
Sometimes remortgaging may not be the best option for you. Get in touch to discuss your specific case requirements and we can explain the best options available to you to achieve your desired outcome.
Please remember, your home may be repossessed if you do not keep up repayments on your mortgage or any loan secured against it.