Have you considered whether now is the right time to remortgage? Whether you’re planning home renovations and want to release equity from your house to fund it or you just want to reduce your monthly mortgage payments by switching onto a better deal, it could be the ideal time to act.
So read on to find out everything you need to know about remortgaging. And once you’re armed with the facts, you’ll see remortgaging is a simple process that could bring you big rewards.
What does remortgaging mean?
Put simply, remortgaging is when you switch your mortgage on your current home from one lender to another. Your new mortgage will then replace your old one.
It’s all about shopping around to make sure you’re on the best deal for you. It’s a bit like when you’re comparing deals on a mobile phone or home insurance; you’ll want to make sure you’re getting what’s right for you at the lowest cost possible. And when it comes to remortgaging, the savings could be huge; depending on your circumstances you could find you save hundreds of pounds a month on your mortgage payments by remortgaging.
Why remortgage?
With mortgage terms typically lasting for 25-30 years, or even longer in some cases, you’ll probably find that your circumstances change over the years.
So while saving money on monthly mortgage payments is one key reason why many people remortgage, you can also remortgage in order to better suit your current financial needs.
Here are some other reasons why people remortgage:
- Wanting to release equity for home improvements
- Releasing equity to pay off debts
- Wanting to make more overpayments on your mortgage than your current deal allows
- Your current deal is up for renewal
How does remortgaging work?
Just like when you apply for a mortgage, lenders will want to see that you’re a low-risk borrower. So you’ll need to provide copies of your bank statements and lenders will check your credit report too. It’s a good idea to check your credit reports yourself first.
One factor to be aware of is that your current lender may charge fees such as an early repayment charge if you end your mortgage term early. So it’s a good idea to get advice from an expert mortgage adviser. It may be that you’ll still be able to save money even if you have fees to pay; they’ll be able to run through the figures with you.
How much could I borrow?
If you’re curious about how much you would be able to borrow, then use our handy mortgage calculator to get an idea.
And to find out about what mortgage deals are available, speak to one of our expert mortgage advisers for a no-obligation chat. Whether you’re looking to save money by moving onto a better deal or if you want to release equity from your home, our advisers can help you make the right choice for you - so get in touch today!
You may have to pay an early repayment charge to your existing lender if you remortgage.
Important information
Your home may be repossessed if you do not keep up repayments on your mortgage.
There may be a fee for mortgage advice. The actual amount you pay will depend upon your circumstances. The fee is up to 1%, but a typical fee is £499.