What is Re-Mortgaging and Why Do It?
This is where your current mortgage deal (say a 2 year fixed rate) is coming to an end. This will mean that your mortgage rate will be changing to the lenders Standard Variable Rate and in all likelihood this means that your monthly mortgage payment will be increasing..... Sometimes by quite a significant amount.
In order to stop this happening and keep your payments as low as possible this means re-mortgaging to another mortgage deal (such as a 2 year fixed rate). This can be done with your existing lender or you can move your mortgage to another lender.
Should In Stay With My Current Mortgage Lender?
Your lender might contact you when your mortgage deal is coming up for renewal. However don't rely on this as in practice this does not always happen and it could mean your payments increase without you realising.
When you move to the Standard Variable Rate 'usually' this means that there is no penalties to move your mortgage from one provider to another (you should check with your current lender about any repayment penalties).
The world of mortgages is a very competitive market and just because your lender provided you with the best rate last time, does not mean that they will now.
You owe it to yourself to get a cost comparison of what your existing lender will offer compared to the rest of the market. Doing this could save you hundreds if not thousands of pounds in mortgage interest.
Request a Free Mortgage Consultation to see how much money you could save.
Are There Any Costs To Move?
This will depend on your current situation and mortgage needs. However in many cases the lender you are moving to will not charge, in fact in many cases they pick up the cost of any valuations and solicitors needed to move the mortgage.
When we provide you with cost comparisons of 'old vs new' we are always considering the 'total cost' over your next mortgage deal period. Say for example you are moving to a 2 year fixed rate. We will compare the total interest paid over that two years + any costs and fees so that we understand the total amount you would pay over that period. By doing this we can transparently compare your current lender against the very best the other lenders have to offer to ensure that you are paying the lowest amount for your mortgage over your next deal period.
To have these comparisons made Request A Free Mortgage Consultation. Just enter you name, email and telephone number and we'll be in touch to make those comparisons with you.
Can I Change The Term of the Mortgage?
Traditionally mortgages were set up for 25 years. However the reasons for this are no longer valid in today's age. The term of your mortgage is important is it dictates how much interest will be paid over the term and also how much your monthly repayments are. Stretch the mortgage term out and you will pay more in interest over the full term, however pay a lower monthly payment. Reduce the term of the mortgage and you will pay less in interest over the term, however pay a higher monthly payment.
When you re-mortgage this is your opportunity to change the term of your mortgage. If you can afford a higher monthly repayment then you might wish to consider reducing the term. If on the other hand your situation has changed and things are tighter financially then you might wish to consider increasing the term.
Can I Borrow More Money?
There may be points in your life where you want to access some of the equity in your property. This could be to make some home improvements, release money to buy a second home, or even consolidate some personal debts into the mortgage to lower your overall monthly repayments on your debts.
At the point of a re-mortgage is the perfect time to consider borrowing more money as it means you can look for the lowest cost mortgage overall and are not forced to take the further borrowing with your current lender at the only rate you can get.
The amount you can borrow will depend on how much equity you have and your current situation.
How To Save Money
We provide independent research and comparison considering your current lender against the best of what other lenders have to offer.
Request A Free Mortgage Consultation. We will talk through your current situation and objectives. Once we understand this we will run comparisons of your lender and the best rates and deals in the market so you understand which mortgage lender offers you the right deal for you and how much money you could save.
Simply fill in your Name, Email and Telephone Number and we will be in contact shortly.
"Very personable, very accommodating and great service. Really made a big difference and meant we got the very best products and house." -- Adrian Ferrone
"Gavin has provided a great service for us over 2 house moves. He works hard at dealing with the products and efficiencies as well as providing a great customer service. The most important aspects for us have been, he is contactable when needed, and dealt with our complicated application for our current house in a timely efficient manner. I would highly recommend Gavin to anyone who asked us." -- Jon Walton
"Helpful every step of the way! Everything you could ask for in a financial advisor. Great advice from an honest, professional and friendly advisor." -- Louise Exton
YOUR HOME / PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.
We charge a fee of £299 which falls due on offer of the mortgage recommended. We may also receive a commission from the lender for placing that business. We do not issue refunds.
The guidance and/or advice contained in this website is subject to UK regulatory regime and is therefore restricted to consumers based in the UK. Premier Financial Planning Ltd is Authorised and Regulated by the Financial Conduct Authority. The Financial Conduct Authority does not regulate taxation advice, estate planning and some forms of mortgages. The FCA regulates financial services in the UK and you can check our authorisation and permitted activities on the Financial Services Register by visiting the FCA’s website www.fca.org.uk/firms/systems-reporting/register or by contacting the FCA on 0800 111 6768.
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