Integra News When should You re-mortgage?
Remortgaging is the point when your current mortgage deal as come to or is coming to an end and you need to replace it with a new deal. Remortgaging can save you from higher standard variable rates, and can be used for purposes unrelated to your property such as purchasing a new car.
Other common reasons for remortgaging are:
• Adding or removing someone from the mortgage (aka Transfer of Equity)
• Debt consolidation
• Capital raising for home improvements
• Capital raising for buy-to-let properties or holiday homes
• Helping others raise money for a house deposit
• Capital erosion (finding a lower interest rate so that you can pay back more capital)
We would definitely recommend considering remortgaging if your current deal is about to end, as your property may now be worth more than it was when you purchased it, and so your loan-to-value ratio may have changed and this could mean that you have access to a broader and more competitive range of deals.
Many people choose to remortgage once their current mortgage deal is up, but, some will remortgage during their current mortgage deal. Re-mortgaging during your current deal will mean that you may face an early repayment penalty charge. So, it would be wise to reach out to an advisor, who can calculate whether you’d still be saving money if you re-mortgage despite facing the penalty charge.
Regardless of whether you are remortgaging after your current deal or during, an advisor will also compare the amount left to pay with your current product versus the new product, any new fees that the new lender will charge, and more, taking the weight off of your shoulders. If a saving is to be made, it would be wise to consider reducing your payment term to keep your payments in line with/close to what you’re used to. This will allow you to pay your mortgage back faster, and therefore save you money on monthly interest payments.
The remortgaging process is not dissimilar to the process of purchasing a new property, as credit checks, searching for new deals and applying for the mortgage will need to be done. However, here at Integra Financial we cover all of the above for you, so if you decide to remortgage, we vow to make it easy for you.
Are you thinking of remortgaging? Feel free to contact us if you have any queries, or if you are certain that you want to remortgage. We will ensure that you make the best financial decisions possible!
Phone: 0117 251 0083
PLEASE NOTE: A mortgage is a loan secured against your home or property. Your home or property may be repossessed if you do not keep up repayments on your mortgage or any other debt secured on it. We offer a comprehensive range of mortgage products from across the market. We offer both first and second charge mortgages, but not deals that you can only obtain by going direct to a lender. For those seeking to increase their existing borrowing, alternative finance options may be available and more appropriate for your needs. For example, a further advance from your existing lender or an unsecured loan (e.g. a personal loan).