Remortgaging is a term used mainly for moving your mortgage from one lender to another, although taking out a new mortgage on a property your currently own, but do not have a mortgage on, is also classed as a remortgage.
There are a few reasons why you may need to remortgage your property and whatever the reason our consultants can help ensure your needs are met.
Your home may be repossessed if you do not keep up repayments on your mortgage.
Your Current Mortgage Deal Has Expired
Usually when taking out a new mortgage you will enter into a deal which will last for a certain period of time, a 2 year fixed rate for example. When this deal comes to the end of its term the interest rate applicable to your mortgage will usually increase, as you will revert on to what is commonly known as the lenders “Standard Variable Rate” or “SVR”.
Any penalties which applied to paying off your mortgage during the deal period will also usually expire at this time, leaving you free to find the next best mortgage for you. Typically, although not always, the best deal available in the market will be from a different lender and so switching your mortgage to a new provider is the best option.
You Would Like To Increase Your Mortgage
You may have a need to increase your mortgage to release some of the equity in your property, to carry out come home improvements for example, although funds can be raise for almost any reason.
Should you still be within the penalty period of your existing mortgage, and wish to raise funds, it may be best to approach your existing lender for what is called a “further advance” as remortgaging to a new lender would incur penalties. Although a further advance may be charged at a higher rate to your main mortgage, this will only be a temporary situation as you can combine both parts when moving to a new lender at the end of the penalty period on your main mortgage.
Should however your deal be coming to an end soon, or it has in fact already expired, you can increase the level of your mortgage as and when you switch to a new lender to obtain the best deal.
You Want To Change The Terms Of Your Mortgage
You may wish to change some factors of your mortgage; an increase in the term, for example, or a switch from a capital and interest mortgage to interest only. In most cases your current lender will be able to accommodate the changes you want to make. However in some cases the lender you are with may not offer what you need. For example, you may wish to increase the term for longer than your current lender permits. In the event that your lender cannot make the changes you want you may need to remortgage to a lender who can.
You Don't Have A Mortgage On Your Home But Want To Raise Funds
A property you own with no mortgage attached is classed as “unencumbered”. Should you wish to raise funds from the equity in your home this would be classed as a remortgage. This can be treated similarly to those looking for a new deal for an existing mortgage as the same products are available in this instance.
How Can We Help?
Whatever your need for remortgaging your home, our experienced consultants will provide the help and advice you need to ensure that you obtain the best deal for your specific requirements. We will provide you with your very own adviser who will take the time and care required to fully understand your needs before applying their expertise to sourcing the whole market for the most suitable and competitive solution for you.