Should I remortgage?
A remortgage is when you take out a new mortgage on a property that you already own. You may consider a remortgage when your current mortgage is coming to the end of its fixed interest rate deal. Or you may want to borrow more to raise money for something such as home improvements.
There are many reasons why you might want to remortgage, including:
- Your current deal is about to end
- You want a better interest rate
- Your home’s value has risen a lot
- You want to overpay but your lender won’t let you
- You want to switch from interest-only to a repayment mortgage.
The Mortgage Dog will give you the best advice and if applicable, find you the best deal.
There are some circumstances when a remortgage may not be best such as:
- You’ve had credit problems since your last mortgage
- You have little equity
- Your repayment charge is large
Either way, we will give you the best advice.
How can we potentially save you money?
Coming to the end of your current deal?
If you chose a fixed interest rate deal when you first took on your mortgage, it will have been for a set amount of time (usually between 2 and 5 years). When this time period is about to come to an end, it is time to start searching for a new deal.
On a Standard Variable Rate (SVR)?
When your fixed deal ends you will normally be moved onto your mortgage provider’s SVR. This may be higher or lower than what you were paying before and will change in line with the Bank of England base rate. If you are on a SVR, you may be able to save money by moving to a fixed deal.
Property has significantly increased in value?
If your home has gone up in value a lot since you got your mortgage or last had it valued by your mortgage provider, it could be possible for you to get a better deal. If the new value of your home takes you into a different loan to value (LTV) bracket you may be able to get a lower rate of interest.
You may have to pay an early repayment charge to your existing lender if you remortgage.
Releasing Equity
Prospective Property Owners
If you have enough equity in your home, it may be possible to remortgage your home in order to release some. Your lender will require you to provide a reason for remortgaging in this way for example, to consolidate debts, redecorate your home, build an extension or use the money to invest elsewhere, for example buy to let.
Think carefully before securing other debts against your home. Your home may be repossessed if you do not keep up repayments on your mortgage.
Switch to a more flexible Mortgage
The Right Option for You
Sometimes the mortgage you originally signed up for no longer meets your needs. Maybe your circumstances have changed and you require a mortgage that will allow you the occasional payment break or you wish to make a regular overpayment without being penalised? There are many different mortgages out there which may suit your requirements.
Flexible Service
Your place or ours?
We make it as convenient to you as possible,
We offer face to face appointments in the comfort of your own home or you can come to our office. If you are pressed for time we can talk over the phone.
We’ll make it as stress free as possible for you.