A remortgage is where the mortgage you currently have on your property is changed either by moving to a new lender or by switching to a different product with your existing lender. You could be unnecessarily spending hundreds or potentially thousands of pounds a year more than you need to be on your mortgage. This is why it's very important to regularly review your mortgage to ensure you are getting the best terms available to you. People often re-mortgage their homes in order to save money by obtaining a product with a lower rate of interest and thereby repay less interest on the debt. People also remortgage in order raise money for home improvements, business investments, or debt consolidation.
When considering a remortgage, it is first advisable to speak to financial adviser to assess your circumstances to ascertain if remortgaging is the most advisable direction for you. There may be alternative options such as second charge mortgages or interest free balance transfer credit cards which, depending on what the loan is for, could be more suitable to your needs. Again, your circumstances need to be carefully considered, as well as the amount of finance you require and the purpose of the loan. If you have come out of your fixed period and simply want a better rate for the remaining term of your mortgage, then remortgaging to a lender or product with a cheaper rate would certainly be the most advisable option.
Other factors to consider are your income and affordability which must be assessed to evidence your ability to support repayment of the mortgage. This is especially important if there have been significant changes to your income and/or outgoings since taking out your mortgage. You should also consider your planned retirement age as this can have an impact on the mortgage term available to you.
There are various types of remortgage products available on the market that we are able to offer advice on and arrange. It is always recommended that you speak to a financial adviser in order that they can assess your circumstances and requirements and advise on a product best suited to your requirements. The types of mortgages available include:
- Fixed Rate Mortgages
- Capped Rate Mortgages
- Discounted Mortgages
- Tracker Mortgages
- Offset Mortgages
If you require further information or guidance on how the process of re-mortgaging your home would work please complete the short enquiry form or give us a call and a dedicated account manager will be happy to assist."