Remortgage

“Your home may be repossessed if you do not keep up repayments on your mortgage”

What Is Remortgaging?

Remortgaging is simply changing your current mortgage deal. There are many reasons why you might want to change your mortgage, from saving money to releasing equity for home improvements. You can choose to either change your lender or to change your mortgage and stay with the same lender, both are considered “a remortgage.

Your Fixed Rate Deal Is Due To End

When you take out a fixed rate mortgage the interest rate has an introductory fixed term, which is usually lower than the lender’s standard variable rate (SVR). When this term ends you’re automatically put onto the lender’s SVR. This will be more than you were paying before.

Your Home Rises Considerably In Value

If the value of your home increases dramatically, your loan to value (LTV) ratio will fall. A lower LTV gives you access to lower mortgage rates from most lenders.

You’re Not Allowed To Make Overpayments

Making overpayments on your mortgage can be beneficial if you can afford to do so. Unfortunately, whilst many mortgages do allow an annual overpayment the terms of some mortgages prohibit this, so remortgaging is a good option if you want to make overpayments, but currently can’t.

To Borrow More Money

Remortgaging can sometimes be a good way to borrow additional funds for high value items or for home improvements. You can even use a remortgage to consolidate your debts, but you should bear in mind that it’s not always the cheapest way to borrow money.

 Debt consolidation is not always the most suitable option, consolidating debts must be carefully considered. It will usually mean more interest over a longer repayment term and there may also be early repayment penalties on your current mortgage, you should think carefully before securing other debts against your home. There are other ways to manage debt such as free debt advice charities, you can find out more by contacting the Money Advice Service https://www.moneyadviceservice.org.uk/en/tools/debt-advice-locator these services may be more suitable for you

Be careful about securing other debts to your home, as your home could be repossessed if you are unable to keep up your repayments on a mortgage or any other debt tied to your property.

We will provide you with a bespoke service to make sure we take everything into account. There are lots of factors to consider when securing your debt against your property vs. the impact of having unsecured debt, as well as comparing the benefits of borrowing money over a long term vs. borrowing money over a shorter term.

You Want Flexible Mortgage Benefits

Many mortgages now have flexible benefits built into them. For example, the allowance of payment holidays, or the ability to offset savings against mortgage interest. Remortgaging is a good option if you wish to benefit from this type of flexible add-on.

When Is Remortgaging Not A Good Idea?

Whilst remortgaging can benefit some, it really does depend on your personal circumstances. If any of the below apply to you, remortgaging will not currently be a good option.

To Change Your Mortgage Repayment Type

You shouldn’t need to remortgage in order to change your existing mortgage from interest-only to capital and interest repayment. Most lenders should offer this option to all customers.

Your Mortgage Has High Exit Fees

Some mortgages will have early exit fees or an early repayment charge. If these fees are high they often outweigh the benefits of remortgaging.

You Have A Great Deal

Whilst you should always look out for better offers, if you already have a competitive mortgage rate you may not benefit from remortgaging. The cost of remortgaging will negate smaller interest savings.

Your Financial Circumstances Have Declined

If your financial situation is worse now than it was when you took out your mortgage, your application for a remortgage is unlikely to be accepted. This is also the case if you have experienced recent adverse credit.

Your Property Has Low Equity

If your property has decreased in value, your LTV will be higher. This means you will have very little or possibly negative equity (you owe more than your home is worth). Lenders will not accept a remortgage application under these circumstances.

What Happens If I Don’t Remortgage After My Deal Expires?

If you choose not to remortgage you’re automatically transferred onto your lender’s Standard Variable Rate

Whilst it’s very likely your monthly repayments will increase, there is no legal obligation to remortgage.

However, there is no reason to be paying more for your existing mortgage when you could be saving money and/or taking years off your mortgage term by remortgaging.

What Fees Are Associated With A Remortgage?

Remortgaging has similar fees to a standard mortgage, such as broker fees and arrangement fees. The reason for your remortgage can also have an impact on the fees. Many lenders now offer free valuation and legal fees on remortgages as an incentive to obtain your business.

A deposit is not required, but it can improve your chances of acceptance.

How Can A Mortgage Broker Help?

Deciding whether now is the right time for you to benefit from a remortgage can be difficult. A mortgage broker can offer you experienced advice based on your individual circumstances. They can also ensure you approach those lenders who are most likely to accept your application.

Another benefit of using a mortgage broker is accessibility. Some of the deals that mortgage brokers have access to are not available directly to customers. It’s, therefore, always worth checking whether they can help you obtain a better deal.

Remortgaging For A Better Deal

Standard Variable Rates are our least favourite words here at Mortgage-Helper.co.uk. If you’re on your lender’s standard variable rate then the chances are you’re paying more mortgage interest than you need to.

What’s The Problem With Standard Variable Rate

Essentially paying your mortgage at a standard variable rate could cost you more. There is no reason to be paying more for your existing mortgage when you could be saving hundreds of pounds and/or taking years off your mortgage term by remortgaging.

There’s also a chance that your house could have gone up in value, meaning your equity will have increased. This gives you access to more attractive mortgage deals and you will also likely have the opportunity to borrow more money, if you need to.

Why Is Mortgage-Helper.co.uk Passionate About Solving This Problem?

Unfortunately, lots of people don’t realise that there are better options available to them and we don’t want anyone to drop onto the SVR and pay more than they need to. People are busy with work and family issues, meaning that the subject of mortgage payments will often be overlooked.

Money is a very personal subject, which can often be masked by shame, especially where saving money is concerned. We want to offer people a safe, discreet and judgement free environment to discuss their finances.

How Can Mortgage-Helper.co.uk Help People With Their Remortgage?

At Mortgage-Helper.co.uk we’re working to make our clients’ lives simpler. We want to normalise conversations about money saving and mortgages, cutting through the intimidating jargon to provide a clear and concise explanation to everyone.

We will take the time to fully assess your circumstances and your mortgage terms to see how you can benefit most from remortgaging your home. We don’t work standard office hours, so we can work around whatever your lifestyle dictates.

 How Long Does It Take?

You’d be surprised how quickly we can review your current mortgage and organise your remortgage for you. In some cases, such as Product Transfers/Rate Switches, you can be paying less in just a few days. More complex remortgages can take between four to six weeks.

Who Can We Help?

We like to think that anyone would feel confident to approach us for our help. We’ve helped a wide range of people, such as families, young couples, single parents, landlords and busy emergency workers on a tight schedule.

At Mortgage-Helper.co.uk our service is quick and efficient, so if that fits in with your lifestyle, or you simply don’t want a long, stuffy appointment at your bank, we’re the choice for you!

What’s The Next Step?

Your first step is to book an initial call with us, either via our website or you can email us. We will call you to carry out the consultation via phone or Zoom or whichever you are more comfortable with.

Why use Mortgage-Helper.co.uk

• We’re CEMAP qualified advisers with a wealth of experience and knowledge to offer
• We work around you and your hectic lifestyle
• We’re here to make the mortgage journey easier from start to completion

Be careful about securing other debts to your home, as your home could be repossessed if you are unable to keep up your repayments on a mortgage or any other debt tied to your property.