If you’ve been with the same mortgage lender for several years, the chances are you may be paying much more than you need to for your home loan
If you have not reviewed your mortgage for a few years, you could be paying much more than you need to.
Remortgaging is simply switching your mortgage deal to a better deal with the same lender, or moving to another lender.
- Lower interest rate, smaller monthly payments
- Increase borrowing (releasing equity) – to consolidate debts or home improvements
- Pay off your mortgage faster
- Fixing to protect against rate rises
Think carefully before securing other debts against your home. Your property may be repossessed if you do not keep up repayments on your mortgage.
Lower interest rates
Most mortgages start with an introductory deal: fixed or discounted for 2-5years. Once this deal ends, the interest you pay will be the lenders Standard Variable Rate (SVR) that is normally higher than introductory deals.
We may be able to help you secure a better deal: Our mortgage brokers will check with your existing lender and the rest of the market the products available and recommend new mortgage deal.
If the value of your home has increased, or your circumstances have improved you may be able to borrow more thereby releasing equity in your home.
Remortgaging to a new lender may enable you to raise the extra money you need. The new lender will ask what the extra money is for, which should be personal reasons: home improvements; consolidate debts or a new car. You would be unlikely to receive the money to start up a new business.
Pay off your mortgage faster
You may be looking for a mortgage deal where you can pay off large chunks of the mortgage with no penalties.
If you’re happy paying the same or slightly higher monthly amount you could reduce the length of your mortgage. This means you will be repaying more of the loan each month whilst paying less interest over the fixed deal.
Protection against rate rises
If you are currently paying your lenders Standard Variable Rate SVR, you may see fluctuations, up or down, to the amount you pay from month to month. If you would rather have a set monthly amount you may be able to remortgage to Fixed, Capped or Discounted mortgage deal.
- Review your circumstances If you are moving to a better deal with a different lender, you will have to complete all processes as buying a new home: Credit report, pay slips, identification and affordability calculations.
When switching to a new product with the same lender there are usually no further checks to be completed.
- Compare the costs If you are moving to a different lender there could be an arrangement fee plus legal and valuation fees. Some remortgage deals include the Legal and Valuation fees for free. In most cases, the savings you make will be far greater than the fees incurred.
- Complete the paperwork Mortgage application, affordability calculator, pay slips, bank statements, and all other supporting documentation will be required.
- Approval Process You will be credit checked by the new lender, once approved the lender will complete a valuation of your property.
- Mortgage offer and completion If the lender is happy with the valuation, references and credit checks you will receive a formal offer in writing.
Our advisers are ready to discuss your circumstances and check if remortgaging will benefit you. With access to over 100 lenders 1’000’s of mortgage deals we will find the best deal for you and guide you though the entire process.