Remortgaging your house
Call us on 0808 231 1073, Lines open 24 hours, 7 days a week
We are fully independent which means we have access to the whole of the UK lender market. We also have an in house service team who will see your remortgaging application through to completion and provide you with updates and support along the way.
Should I remortgage?
If your current mortgage deal is coming to an end, remortgaging could be the option for you; by searching for a better deal, you could potentially save yourselves thousands of pounds over the life of your mortgage, saving you money on monthly payments or significantly shortening the number of years left on the loan.
Is it suitable for me?
Think it’s too much hassle? Not sure of the costs involved or when you are eligible to remortgage?. Contact us today on 0808 231 1073 or fill in our simple to use contact form and our advisers will get back in touch with you.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE. THERE MAY BE CHARGES ASSOCIATED WITH REMORTGAGING AND IT MAY NOT BE SUITABLE FOR EVERYONE.
Why you should remortgage (and why you shouldn’t)
In the same way as you should check your utility bills and TV packages to make sure you’re on the best rates, you should also keep an eye on your mortgage to make sure you’re not paying over the odds.
Usually, when you take out a mortgage you have a certain rate for the first few years (often two to five, although it can be longer) and once this period is up, you revert to their ‘off the shelf rate’ which is usually higher than you were paying before. Until you are out of this period there will be a charge (known as an Early Repayment Charge, or ERC) to move or change your mortgage although this will usually decrease the nearer you get to the end date. This doesn’t mean it can’t be worth moving, just that the calculations need to be done carefully.
You′re reaching the end of your initial rate period
This is the easiest time to decide to remortgage, but remember this doesn’t mean that you need to switch providers completely, if you are happy with your current mortgage company it is worth seeing what rates they can provide if you sign up for another 2/3/5 year deal. As Independent Mortgage Advisers we are often best placed to get these rates for you, compare them against the whole market, and to get the application through with the minimum amount of hassle – just give us a call and see what we can save you.
Your house is worth more
If your house has increased in value significantly – maybe you’ve renovated, or the area is doing well, then it can be a good time to remortgage as your LTV (loan to value) rate will have decreased.
For example, if you buy a £300,000 house and have £30,000 as a deposit, you’ll need a mortgage of £270,000 – which is 90% of the house value, right up at the top of what mortgage providers will consider and your rates will be higher in consideration of this.
If the same house increases in value to £350,000, your mortgage amount hasn’t increased (in fact it’s probably decreased as you’ve been paying it off, but let’s ignore that for now) and now you have a loan of £270,000 against a higher value property. Your LTV is now around 78% and you’ll get a more favourable rate because of it.
You have more equity to invest
This is similar to what happens when your house increases in value, except you’re decreasing your mortgage amount rather than increasing the value of the house. Your LTV decreases and rates get better.
A note of caution: If you do have additional money to invest in your mortgage, don’t just assume that your current mortgage will let you pay off a lump sum: There are often penalty clauses that will cost you extra if you overpay – our Advisers can check the small print on your current mortgage and make sure your money is used to pay off your debt, not on fees!
You want a better rate
Maybe you bought at a ‘bad’ time, or you were in a hurry and didn’t realise how much a bad rate could cost. You might just have gone to your bank and thought you had to use them as they knew you; Possibly you were encouraged by your agent when you bought the house to use their mortgage advisers and didn’t understand the implications?
Whatever the reason, if you’re on a rate that looks high compared to others, or you simply want to check that you’re not spending too much in interest, just ask us to have a look for you. Being independent mortgage advisers means that we aren’t tied into a particular list of providers and we can search the whole market; including exclusive rates that some lenders offer only to independent advisers.
After all, if you have a mortgage of £220,000 over 30 years and can reduce the rate from 2.04% to 1.94% (that’s a tenth of a percent) then you’ll save over £4000 in interest payments over the life of the loan!
You′ve changed jobs / circumstances
Mortgage companies will want to see proof of income and that your circumstances are the same or better than when you took out the original loan. If you’ve taken a pay-cut, had a baby, changed jobs or become self employed, you may be better off staying where you are. Our Advisers will let you know what they think your chances will be.
Your credit rating has dropped
If you’re wanting to remortgage to help with credit problems or debt then be aware that the FCA (Financial Conduct Authority) insists that mortgage companies check carefully that they think you can afford any repayments – if you’ve missed payments in the past, or have a lot of credit card or other loan debt, then it might be difficult to remortgage, especially if the equity you have in your house or flat is low. That doesn’t mean we can’t help, but you’ll have less options open to you than if you had a spotless record – we’ll need to go through everything with you and may be able to suggest avenues you haven’t thought of. The important thing to do if you’re struggling to make any repayments is to ask for advice, there are always options available to help.