Remortgage with Bright Money

Get a better interest rate: One of the most common reasons for us remortgaging clients. When their current fixed-rate term ends, you typically move to a higher standard variable rate (SVR). Remortgaging to a new deal with a lower interest rate can save you money on your monthly repayments and the overall cost of your mortgage. Some lenders will offer new clients a better deal than existing clients, relying on customers not talking to brokers can work well for lenders.

Switch to a different type of mortgage: With so many types of mortgages available, each with its own features and benefits, its difficult to know what’s available and suitable for your circumstances. You might remortgage to switch to a mortgage that better suits your current needs, such as a fixed-rate mortgage for stability or a repayment mortgage to build equity faster. Some lenders offer an off set facility with a current account, some have different criteria for interest only.

Home improvements: If you have enough equity in your home you may wish to release funds for home improvements, extend or complete a loft extension. This can be a good way of increasing the equity in the property along making the property more suitable. Each lender will have different affordability along with criteria, if you are releasing equity a lender will want you to keep a certain amount of equity in the property – say 10%. This varies from lender to lender along with affordability, brokers will look at the suitable lenders and compare the prducts.

Consolidate debt: If you’re juggling high-interest credit cards or personal loans, remortgaging could consolidate them into one, potentially lower-interest mortgage payment. This might simplify your finances and save you money, but remember to factor in fees and potential risks. Whilst debt consolidation will likely reduce your monthly payments, you will more than likely pay more interest over the term of a mortgage.

Buy another property: some will raise finance to purchase a Buy to Let property to supplement their retirement income or replace their day-to-day job. Releasing money to buy another property might seem a good idea but, we always urge our clients to talk to an accountant and tax specialist before they do Section 24

Something else: along with the reasons already mention, other reasons to remortgage could be to buy a new car, raise money for a business or a holiday. Most lenders will not remortgage to pay tax bills or fines.

Moving to a new term: If rates raise and money becomes tight, you might wish to remortgage to a longer term. Provided your occupation fits, some lenders will allow the term to 80 next birthday. This could be useful if your income changes or you have other financial goals.

Moving to a new term: If rates raise and money becomes tight, you might wish to remortgage to a longer term. Provided your occupation fits, some lenders will allow the term to 80 next birthday. This could be useful if your income changes or you have other financial goals.