A Guide to Re-mortgaging

Your mortgage can be the single, most expensive outgoing within a household budget. Therefore, it is important to review your mortgage deal regularly. You could be overpaying or stuck on a deal which is no longer suitable. The market is forever changing with new mortgages and new criteria from different lenders. For that reason, obtaining mortgage advice at the time of re-mortgaging can be vital to obtaining the best deal for you.

Why might you re-mortgage?

–       To save money and reduce the amount of interest you are currently paying.

–       You have come off your lender’s initial deal period and are now on their Standard Variable Rate.

–       You are coming to the end of your current deal and your existing lender is offering you a higher rate.

–       You are looking to borrow extra for home improvements, buying another house or debt consolidation.

–       You are on a variable/tracker rate and you are looking to have a set payment moving forward so know you know exactly what you must pay every month.

When is the best time to remortgage?

The best time to start looking at re-mortgaging is 3-4 months before your existing deal is about to expire. Usually, you will have a fixed or tracker product that has an initial rate for 2-5 years. As soon as this expires it is likely that you will go on to your lender’s Standard Variable Rate. Your payments will increase if this happens and the interest rate can be double or treble the best deals on the market.

Your existing lender may write to you with a couple of new deals that are better than their Standard Variable Rate. However, it is important not to be tempted to take whatever they offer. There are thousands of deals out there on the market, which could save you considerable money to spend on your home, family or self.

This is where we come in. We can source the best deals from across the whole of the market and so you can find the best deal. Getting financial advice at the time of re-mortgaging will improve your plans going forward so you can continuously save money. Our team of qualified mortgage advisors look to provide clear, coherent and sound advice.

If you are in a fixed deal already and still have a few years left, you may incur early repayment charges if you want to re-mortgage. You may still have the option of additional borrowing on your current mortgage to avoid paying these charges. If you’re unsure, we can explain this in more detail.

Do not be put off of re-mortgaging if your circumstances have changed since you first got your mortgage. Income can increase or decrease, and outgoings can do the same. Whether you are self-employed, day contracted, on benefits or a zero-hours contract, these are all common income types that a number of lenders will accept.