In short, Remortgages are when you switch your existing mortgage to a new deal, either with your existing lender or a different provider.
You’re not moving house and the new mortgage is still secured against the same property. The more equity you have and the lower your loan to value (LTV), the more competitive the rates you’ll qualify for.
There can be a large number of reasons for making the switch, including:
- To reduce the interest rate on your mortgage – one of the most common reasons!
- Raising money to carry out home improvements – This really depends on what sort of home improvements you’re looking to make. For example, if it’s just something relatively low-cost like new flooring then it’s usually quite straight-forward. However, if it’s for something bigger like a double-story extension, new kitchen, garage and you need to borrow £70,000, then the banks will want to know a little bit more about the improvements e.g. a summary of costs and materials.
- Consolidate your personal debts – This is all about understanding the lenders and making sure you go with the right one that will accept your type of application and what their different limitations are. This is another thing that we can help with as we understand the lenders and what their different requirements are!
- Consolidate all of your debts into one payment – be aware that as this means securing more debt against your home it may cost more in the long run, and it’s something you should seek advice on.
Always be prepared when making any changes to your mortgage, so a good time to consider your options can be up to 6 months before your current deal ends. This will give you enough time to plan your next steps, in good time, before your mortgage moves onto the Standard Variable Rate (SVR).
If you’re interested in having a chat about your mortgage, then give us a call on 01925 573328. Or in the meantime, you can check out our Re-mortgaging guide on your website, it’s free to download: warringtonmortgagecentre.co.uk/remortgages
*Your home may be repossessed if you do not keep up with repayments on your mortgage.
