Remortgage with Bright Money
Welcome to Bright Moneys Remortgage hub, here you can find a wealth of information on remortgaging, why some people do this, when its not worth it and the costs involved. Being an independent firm, a major part of our ethos is transparency and when you are remortgaging, you need to be clear why you are doing this.
This might not cover every scenario but should give you the gist, remortgages are available for residential, Buy to Let, and commercial.
A remortgage will be a way of refinancing your property for a number of different reasons.
What our clients say
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.
Saving 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.
TALK TO A BROKER
book a free consultation, by email, phone of chatbot bot.
UNDERSTAND OPTIONS
our brokers will review your situation, discuss options and research the best product.
BOOK A PRODUCT
Once they have researched your scenario, they will make a recommendation and book a product, this will be reviewed up until you new deal starts.
Raising capital
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.
Changing your circumstances:
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.
It’s important to remember that remortgaging isn’t always the right decision. Our brokers will review your existing lenders products along with the rest of the market and advise accordingly.
Sounds great. What do Bright Money think?
We think you should start looking at a new deal up to 6 months in advance, not all but most existing lenders will now offer a product 6 months in advance. We suggest talking to an adviser, then booking the most suitable product. Once booked, we review whether the product is still competitive up until completion. Depending on the lender, most products will not tie you in until the new deal starts.
If you are planning to move, you may want a product with no ERCs. Your existing lender may offer these with minimal costs involved. Bright Money can assist you with booking a new product with up to 90 lenders. Some of the ones we deal with are below
So, if you book a new rate & rates fall, you can opt for the lower rate, provided the lender allows and the product hasn’t started. If you stay with your existing lender, there’s minimal paperwork, no credit checks or validation. Most lenders have an automated valuation. If you move lenders, then you will need to show all documents that fit the new lender's criteria. Some lenders will not let you switch products without using a broker. If you are coming up to the 6-month remortgage marker, get in touch Get in touch
- Your home may be repossessed if you do not keep up repayments on your mortgage.
TALK TO A BROKER
UNDERSTAND OPTIONS
BOOK A PRODUCT
How can we help you?
If you are planning to move, you may want a product with no ERCs. Your existing lender may offer these with minimal costs involved.
Bright Money can assist you with booking a new product with up to 90 lenders. Some of the ones we deal with are below.
