Can I Remortgage...?
House prices are rising again and buying your first home can seem a daunting challenge. Saving for a deposit and getting a mortgage the right mortgage deal agreed can be tricky enough although that’s just the start of it.
Anyone who has an existing mortgage can consider the option of remortgaging - provided that they meet the criteria set by their potential new mortgage lender.
Why do we remortgage...?
There are many financial benefits to consider remortgaging. The three most popular reasons why people choose to remortgage with us are to save money & also to raise money.
Save Money - In order to benefit from lower interest rates and in turn reduce your monthly mortgage payment a Free No obligation remortgage review could be the first steps to saving you money.
Remortgaging might be particularly important if you’ve come to the end of a fixed-rate period, or your discounted deal is coming to an end. While you can stay with your existing mortgage provider, you will probably be put on their standard variable rate (SVR) which may not be the best deal around for you although certainly beneficial for your lender due to the higher rate of interest and therefore an increased amount you need to pay each month.
In many cases, remortgaging can make a significant reduction on your monthly outgoings - as an example, if we managed to negotiate down a £100,000, 15 year repayment mortgage from 4.99% to 3.29% you could save as much as £85 a month which over a 12 month period is £984
You could remortgage to raise money by releasing some of the equity in your home. This could be useful if you wanted to release money for making home improvements and in turn adding further value to your property or even raise additional funds to consolidate debts.
Increasing concerns by mortgage holders over potential interest rate rises are another common reason to remortgage as mortgage holders seek the security of a new longer term fixed rate which meets there affordability and budgets targets. A slight increase in the Bank of England interest rate will potentially see lenders pushing up the arrangement cost and the interest rates on there current fixed rates in readiness for the anticipated onslaught of applications and new business.
When should I remortgage...?
With our clients we start looking to arrange a remortgage well before the current deal comes to an end and as early as six months so that you can ensure a smooth switch to a new deal and you avoid any increase in monthly mortgage payments.
What about my early repayment charge...?
Sometimes a remortgaging deal can make up for the early repayment charge although with our experience and expertise we will calculate how much you would have to pay over the remainder of your mortgage if you stay in your current deal in comparison to switching to a remortgage deal.
How long does remortgaging take...?
Remortgaging usually takes around four weeks as we assist you in the completion of all the required paperwork and arrange with the lender a valuation of your home. We will work closely with you, your new lender and nominated solictor to endure a smooth and efficient remortgage takes place.
Let Instinct manage your mortgage and finances
At Instinct Financial Solutions we fully manage, monitor and compare all our clients mortgage deals with the remortgage market daily to see if they can get a better deal than they currently have.
This allow you to have the confidence of knowing your finances are being professional managed by experienced advisors daily allowing you to concentrate on your busy work and family life.
How do we find the best remortgage deals...?
When sourcing the best remortgage deal for you we take into consideration the following:
- the estimated value of your home
- your age and the term of the mortgage you require.
- the amount you want to borrow
- your annual income and expenditure
These factors are important to help us to compare the market better which in turn will help you achieve your personal finance goals.
Think carefully before securing other debts against your home.