Is Remortgaging A Good Idea?
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.