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Is it time to consider remortgaging?

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What is a remortgage and how does it work?

The term ‘remortgaging’ sounds quite daunting, especially as it may feel as though you have only just arranged your original mortgage. However, with our help it does not have to be a stressful process at all. Simply put, remortgaging is when you switch from one mortgage lender to another. Usually, this is to save money by getting a lower interest rate.

Once your introductory offer has ended on your current mortgage (typically a 2-, 3- or 5-year term), you will move onto your lender’s Standard Variable Rate (SVR), which can often be as high as 5%. You can remortgage at any time, however, if you are not at the end of your introductory offer, you might have to pay an early repayment charge.

Most people remortgage when they get to the end of their introductory offer as this is when there can be a financial benefit to doing so.

Why should I remortgage?

There are many reasons why remortgaging could make sense for you but the main one is simple - to save money.

1. Your introductory offer is about to end

Going on to the standard variable rate at the end of your introductory offer is more than likely not going to be the best mortgage rate available to you. You don’t need to automatically accept this either, there may be better deals available to you.

2. You want to restructure your mortgage

Your circumstances may have changed since you first took out your mortgage. Maybe you have had a pay rise or inherited some money and want to pay extra off your mortgage, but your current deal limits your over-payments. Remortgaging will allow you to reduce the size of your loan, change the term of your borrowing and possibly get a better interest rate.

3. You may want to borrow more

If there has been an increase in your income and/or an increase in your property’s value, you may be able to increase the value of your mortgage amount. This can be beneficial for any major financial outlays such as home improvements, especially as it can be cheaper than borrowing from other sources.

4. You want to consolidate debt

Remortgaging can enable you to consolidate other debts such as credit cards and loans, which typically have a higher interest rate than a mortgage. However, it could mean that you pay more interest over your mortgage period, so this should be carefully discussed with an experienced mortgage adviser.

Even if none of the above situations are particularly relevant to you, it will likely be in your interest to review your mortgage arrangements when your introductory offer is coming to an end. We usually recommend starting to look at your options 3-4 months in advance of the end of your introductory offer.

How can we help with remortgaging?

Remortgaging is every bit as important as selecting your first mortgage so guidance and advice from a specialist that knows the market is invaluable.

Our specialist mortgage and protection adviser, Rebecca Adams, can help. She will spend time getting to know you and your specific circumstances. Most importantly, she will support you throughout the entire process. That way, you can be sure someone is there to guide you every step of the way making the experience hassle free.

We also know choice is important and, as we are independent, we have access to over 50 of the UK’s best-known lenders. Rebecca will not only look at the options available in the wider market but also consider any deals on offer from your existing lender ensuring you are always on the best rate for your circumstances.

If you are coming to end of your introductory offer and considering what to do next, please contact us to arrange a complimentary initial consultation with Rebecca Adams, our specialist Mortgage & Protection Adviser.

You may have to pay an early repayment charge to your existing lender if you remortgage.

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