Reasons to Remortgage

If you are looking at remortgaging your property but are unsure whether it’s the right decision, we have listed five reasons why it might be for you. There are other reasons but here are just a few.

1) Your current mortgage deal is ending

The majority of mortgages have an initial deal such as: fixed or tracker which for two, three, five or even ten years. After this time, the rate automatically goes onto the lender's Standard Variable Rate (SVR). The SVR will usually be much higher than your initial rat. It is therefore important to start researching a new product around 6 months before your deal is about to end. This will make sure you find one that is most suitable for you and allow you time to make the switch.

2) You are looking to find a better deal

With rates being record-high, many people believe they can get a better deal elsewhere. If you are on a fixed-rate mortgage deal – you may have to pay an early repayment charge or leaving fee to your existing mortgage so you must look at the overall costs before switching.

3) You want to borrow more money

Mortgage providers will lend extra money for a variety of reasons including, the most popular is making home improvements. You will have to give the reason as to what you are planning on using the money for, and the lender will do a full affordability assessment to ensure the new higher loan is affordable.

4) You want to pay off debts

Using the money released from your home through paying off debts with high-interest rates can make payments more manageable and reduce your monthly costs. However, there are risks involved in consolidating debt into your mortgage and you could end up paying more interest in the long run. It is very important that you take advice in this area

5) To change to a buy to let mortgage

If you are living in your property and your circumstances change and you want to let it out, you must seek your lender’s permission. Some lenders will give you “permission to let” but if you want to borrow more money or change the structure of the loan, you will need to remortgage to a Buy to Let lender.

To learn more about remortgaging and to find out if it’s right for you, get in touch with Mortgage Required: 01628 507477 | team@mortgagerequired.com.

Recent posts

Buying a house is a big deal, and where you are planning to buy will make a difference financially. In this short blog, we look at the most affordable and most expensive areas and how much you need to be earning to buy in there.

Equity release is a type of mortgage that allows homeowners 55 and over to access money from their property's equity without having to leave their home. This is done by securing a loan against the house which is usually repaid by selling the property when the borrower passes away or has to move into long-term care.

It’s important to ask questions about the property you are interested in before taking that step to make an offer. A little probing can make all the difference between buying your dream house or something that requires a lot of work.

There are millions of homeowners over the age of 60 who are likely to release money from their homes to pay for their lifestyle during retirement giving those who are 'asset rich but cash poor' a way to live out their retirement the way they wish. 

The average age of a first-time buyer in the UK is two years older than 10 years ago. This is understandable with managing the cost-of-living and challenges within the economy such as high interest rates making it difficult to get onto the property ladder.

Skipton Building Society launches ‘Delayed Start’ mortgage meaning first time buyers won’t be required to make repayments for the first three months. 

According to a survey by Skipton, first time buyers who bought their home in the last five years found that in the first three months of living there, they were spending upwards of £30,000.

If you have recently moved into a property with a garden that requires a little TLC, or you’d like to get on top of your current green space, check out our tips.

High street lender, NatWest, have launched a new product to help first-time buyers purchase a property with assistance from a family member or friend to get them on the property ladder sooner.