Is Remortgaging A Good Idea?

Written by Simon Burnett on August 3, 2021. Posted in Blog.

Depending on your circumstances, remortgaging your home can be an excellent idea. With help from the right mortgage advisor, remortgaging your home can have a range of benefits, including the potential of saving you a great deal of money.

In this blog, we’re answering your remortgaging questions. We’ll outline what it means to remortgage your home, recommend the best time to remortgage and discuss the pros (and cons) of remortgaging your home.

What Does It Mean To Remortgage Your House?

Remortgaging your house is basically the process of switching your mortgage from your existing mortgage provider to a new mortgage provider, sometimes this can result in you saving money.

However, some people choose not to remortgage. There are several reasons why someone may choose not to remortgage their home. For example, the remortgage fees (early repayment charges) may be too expensive. Or the process may seem confusing and time-consuming.

When Should I Remortgage My House?

It is always best to remortgage your house when you are coming to the end of your current mortgage product expiry date. Your existing mortgage lender will have a “headline offer” which can often last from 2 years to 5 years, however this can sometimes be longer.

During this time, your payments may be, for example, a fixed rate that quite often can be at a lower rate than the lender’s standard variable rate (SVR). However, once you reach the end of this mortgage product, your payments may increase unless you remortgage or switch to a new product before the deal ends.

A mortgage broker will be able to advise you on which mortgage lender is currently offering the most suitable mortgage product to meet your circumstances.

Remortgaging your home is also a great idea if your home has increased in value.

Benefits Of Remortgaging

As we have mentioned, the key benefit of remortgaging your home is the possibility of saving money. Remortgaging also provide you with other options, such as changing the mortgage term; raising further borrowing or changing your mortgage type.

Aside from saving money, remortgaging your home also provides the opportunity to:

Switch to a lender/service that is more suitable for your financial situation. Circumstances change over time and the service that was right for you when you entered into your current mortgage product may no longer be the most suitable for you today.
Release some of the equity in your home, allowing you to make renovations or add an extension (improving your home and potentially increasing the value).
Consolidate your debts into one monthly payment.
Pay off your mortgage earlier.

Drawbacks Of Remortgaging

Overall, remortgaging is usually a good idea for many people. However, in some circumstances, there are drawbacks.

For example, the process of remortgaging your home isn’t instant and can take several weeks to complete. Aside from trying to find the right mortgage lender for you, you also have to consider early repayment fees or exit fees from your current product.

In addition, your new lender will assess your eligibility on your current circumstances, So for example, if you have recently become self-employed, you may not be eligible as you may not be able to provide a sufficient number of years’ worth of accounts which may make lending more difficult.

Remortgaging With A Mortgage Advisor

Many people stay with the same mortgage lender for a number of years, sometimes paying over the odds, simply because they find the process of remortgaging or switching to a new product too time consuming or confusing.

But with the help of an experienced and knowledgeable mortgage advisor, like the team here at Burnett Mortgages, this process can be seamless!

We can answer all your questions, address any concerns you have and find you the very best remortgage deal. Common questions we get regarding remortgaging include:

Will it cost too much to move to a new lender?
Have I left it too late to change my deal?
Will the new lender accept me?
Do I need to get a solicitor when remortgaging?
Will it be simpler to just stay with my existing lender? Is moving lenders worth it?
What will my new monthly payments be?
Will I have to pay a deposit again?
Do I need insurance?

Get In Touch

If you are looking for a trustworthy and reliable mortgage advisor to help you through the remortgage process, or if you have further questions about remortgaging your home, don’t hesitate to get in touch.

You can call Burnett Mortgages on 01302 436333 or fill out our online contact form and we will get back to you ASAP.

Burnett Mortgages is your local mortgage broker with more than 12 years of experience in financial services. Our dedicated team tailor the mortgage approach to your needs and always search the market for the very best remortgage deals.

Your home may be repossessed if you do not keep up repayments on your mortgage.

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

There may be a fee for arranging a mortgage and the precise amount will depend on your circumstances. This will typically be £399.

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Comment

Rihan

May 2, 2022 at 8:17 am

Very valuable information, it is not at all blogs that we find this, I was looking for something like that and found it here.

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Jessica
December 2020 “This is our second re-mortgage using Simon and on both occasions he has provided us with a first rate service. Personable, responsive, kind and extremely good at his job. I highly recommend him and will continue to use his services as long as he’s offering them!
Also a thank you to Paulina, who has recently joined Simon’s team and kept in regular touch throughout as well as being very friendly and efficient.”
Juliette Prosser- December 2020
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I would highly recommend Simon to anyone who’s looking for their 1st home or people remortgaging.”
Will Gregorick – April 2021
“Excellent service. Both Simon and Paulina were very helpful guiding us through the process and answering all of the questions we had. Communications level has been fantastic and the application had progressed very efficiently. Thank you :).”
Paulina Lucewicz April 2021
“Simon has just helped us remortgage our help to buy mortgage. He has been so supportive through this process going over and above!
He got us a great deal on our mortgage too. Would definitely recommend him!!”
Rachelle Mclennan – July 2021
“We came across Simons website when we were searching for a local mortgage broker. We had just had our mortgage declined from a bank because I only had one years accounts. I emailed Simon and had a response from him within the hour, he said he’d try his best to help us out. He phoned us a few days later to talk about our situation and why we had our previous mortgage declined. With us being first time buyers we were stressed out and we didn’t want to loose a house that we had fallen in love with. Simon made sure that he gathered as much information as possible from me and my boyfriend and found a mortgage and had it accepted within a week or so. I would recommend him to anyone who is struggling to get a mortgage, he’s very down to earth, friendly and professional and we will continue to use him if we ever buy another house in the future!!.”
Megan – February 2021
“We have found Simon to be a most helpful mortgage adviser. He is knowledgable and listens to clients’ requests and needs. He is very prompt in communication and always goes that extra mile to help. I would have no hestitation in recommending him for mortgaging advice.”
Suzanne
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Nicki – December 2018
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Rick
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Rebecca Hastings, July 2021
“Where do we start with Simon, we can’t recommend him enough. This time we re-mortgaged after he found our first mortgage on our first home. Simon is so easy to talk to, and he always goes the extra mile to help his customers. Any stress you have you have about your mortgage dwindles away as soon as you speak to Simon. Every little detail he explains to you in a way that it is easy for anyone to understand, so you will never sign anything you are unsure about. We can’t thank Simon enough and we will sure be in touch when its time to re-mortgage again.”
Colette Hunt – May 2021
Simon was excellent from start to finish and in very unusual circumstances. He dealt with our mortgage managing to get us the best deal possible in a time of economic uncertainty and made sure our life insurance was up to scratch too. Despite not being able to be in face to face contact due to restrictions imposed at the time communicating was simple, regular, supportive and effective. He was easy to talk to and happy to deal with questions. He certainly went above and beyond to get us relocated and was excited for us even sending us a congratulatory gift. We will most certainly be returning when it is time to remortgage.
Alexis – October 2020
“Simon is totally reliable, trustworthy and professional he went above and beyond to ensure that our mortgage was ported across to the new house we were buying in time for the completion date we had agreed. I would thoroughly recommend Simon to all of our friends and family and would have no hesitation in using him again to arrange a mortgage.”
Steven Wheeler – August 2021
“I couldn’t thank Simon and his team enough for helping me get on the property ladder. He could never do enough to help through the process. As a first time buyer I didn’t have a clue and any question I asked he answered with my best interests at heart. I would advise anyone who is thinking of using a mortgage advisor to use Simon and his team. I will be definitely using him in the future when it comes to remortgage time and thanks to Paulina who chased the solicitors making them pull there finger out. Thank you once again.”
Matthew Lindley – May 2021
“We came across Simons website when we were searching for a local mortgage broker. We had just had our mortgage declined from a bank because I only had one years accounts. I emailed Simon and had a response from him within the hour, he said he’d try his best to help us out. He phoned us a few days later to talk about our situation and why we had our previous mortgage declined. With us being first time buyers we were stressed out and we didn’t want to loose a house that we had fallen in love with. Simon made sure that he gathered as much information as possible from me and my boyfriend and found a mortgage and had it accepted within a week or so. I would recommend him to anyone who is struggling to get a mortgage, he’s very down to earth, friendly and professional and we will continue to use him if we ever buy another house in the future!!”
Megan Randall – February 2021