Remortgaging your home can provide you with some fantastic benefits as a homeowner. These can include switching to a better mortgage deal (and saving yourself some money in the process), to being able to pay off your mortgage quicker. So, is a remortgage the right option for you?
What is a remortgage?
A remortgage is the process of switching your mortgage balance from one lender to another without moving to a new house. It could be time for you to consider a remortgage if:
- If your current mortgage deal has ended
If your mortgage was previously on a fixed rate that’s now finished, you may now be on your lender’s ‘standard variable rate’ (SVR). The SVR is usually higher than a fixed rate deal, which means your mortgage payments will be higher than they used to be.
- Your home has increased in value
Mortgage lenders traditionally increase the interest rate they charge the higher your ‘loan to value’ (LTV) is, which is worked out relative to how big the house deposit was against the overall value of the property. If your home has increased in value since you bought it, your LTV may have reduced, which means you may be eligible to apply for a new mortgage deal with a lower interest rate.
- If you’re looking for some flexibility
Do you need to borrow additional funds to pay for home improvements or consolidate other debts? Would you like the option to make overpayments to clear your mortgage balance quicker? Would you like to use your savings to offset your mortgage balance without using them to actually pay it off? If the answer to any of these questions is ‘Yes!’, then a new mortgage deal may allow you to achieve the flexibility you’re looking for.
Need some help remortgaging?
Mortgage Advice Bureau work with over 90 lenders and have access to thousands of different mortgage products, some of which aren’t available on the high street. Our team of expert mortgage advisers in Harrogate can work with you to find the best deal to suit your individual needs. If you’d like to arrange a free, no obligation appointment, please call us on 01423 895072 or get in touch by e-mail.
Meet our mortgage advisers in Harrogate
You may have to pay an early repayment charge to your existing lender of you remortgage.
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 0.3% of the amount borrowed.