A remortgage is the term used when you raise a secured loan (a mortgage) on a property that either is currently free of mortgage or has an existing mortgage and you switch to another lender.
There are a variety of reasons why you might be considering a remortgage. Perhaps your existing mortgage terms are no longer competitive? Maybe you want to pay of a part of your mortgage with a bonus but your existing mortgagee won’t let you? You might have no mortgage at all but you want to borrow cash from your asset by raising a mortgage, perhaps to pay for a new roof or to pay for a big and unexpected bill!
There are some basic things to bear in mind:
- Will paying off your existing mortgage mean you incur penalty fees?
- What costs will be involved in raising a new mortgage?
- How much can you borrow and for how long?
You should also be considering whether borrowing more on a mortgage is your best route. Sometimes, a short term loan at a higher rate might still be cheaper than buying because of the longer repayment period.
In the first instance, there are some basic things you can do to put yourself in a strong position when applying for a loan. Check your credit status and make sure you’re on the electoral role. Make any budget savings you can before you apply. Illustrating that you are living well within your means will help you when negotiating a new mortgage offer.
Your mortgage options will be governed by the value of your property, the size of your mortgage and your ability to repay it through income.
In most cases the larger your mortgage the more money you might be able to save by shopping around. Of course, the key to a great deal is knowing what’s available! That’s where we come in.
For more information about remortgaging contact and advisor today on 01628 507477.
Related article:
Download our Free First Time Buyers Guide
Recent posts
Statistics now show that those looking to purchase a property would have to save a deposit bigger than their annual gross pay.
Analysis from the Office for Budget Responsibility (OBR) shows that those looking to buy their first home could face a sharp increase if house prices follow the latest predictions, as Coventry Building Society suggests.
According to Zoopla, four in 10 homes are now cheaper to buy with a mortgage than to rent due to lower-cost mortgages - a sign that ownership is becoming more affordable.
Best UK Mortgage Rates this Week
6 days ago
Here are the lowest fixed mortgage rates of the week, available to first-time buyers, home movers, buy-to-let, and those remortgaging.
Call us for more information: 01628 507477 or email: team@mortgagerequired.com.
World Sleep Day Tips
12 days ago
There are many people who struggle with getting a good night’s sleep. Having poor sleep hygiene can be the reason for bad sleep quality in adults. Sleep hygiene refers to habits that can help you sleep better.
Here we have shared some tips to create a healthier sleep.
What you need to know about remortgaging
14 days ago
If your current fixed rate is due to come to an end within the next six months, you will want to start thinking about the options available to you.
Nationwide is the first lender to allow mortgage deeds to be signed electronically and without the need for a witness.
‘My First Mortgage’ from major high-street lender Santander is specifically for those wanting to buy their first property. It allows first-time buyers to purchase 98% of the property’s value. However, certain criteria must be met to be eligible.
More information
Trusted by
