How to Re-mortgage Your House
Before you decide to remortgage, you should look at the details of your current mortgage, as this information helps evaluate its competitiveness within the market. You can remortgage and look for a better deal straight away. You may have to pay a redemption penalty to switch deals. Depending on the terms, you might need to repay the value of any cash-back before being allowed to switch mortgages. You may also have to pay a redemption penalty when switching deals. If you decide to change your mortgage, compare the potential savings against any costs involved in switching. A mortgage adviser can assist you with this. Although it's often possible to save money by changing your deal, keep track of all associated costs and ensure you're getting the best value for your money. Some lenders offer specific remortgage packages where they cover your legal and valuation fees, so all you need to do is compare monthly repayment costs. If you're staying with your existing lender, remortgaging should be relatively straightforward. Your lender will likely contact you before your mortgage term expires to discuss your options. If not, you can reach out to them. However, don't feel obligated to stay put—there are many lenders who might offer a more suitable mortgage for you. If the choice feels overwhelming, consider enlisting the help of a mortgage broker. Not only are they skilled at finding the right mortgage for you, but they also have access to products not available directly to consumers. All mortgage brokers are regulated by the Financial Services Authority, meaning they are bound by a code to treat customers fairly. They must find the deal that suits each borrower and cannot simply recommend products that might be profitable for them. Keep in mind that they may charge for their services, which could influence whether you choose to go it alone or not.
A remortgage involves changing your mortgage without moving your home. Remortgaging is the process of switching your mortgage to another lender offering a better deal than your current lender, thereby saving money. A remortgage can also be used to raise additional finances by releasing equity in your property. When you remortgage, you are ending your old mortgage deal and switching to a new one. This usually involves switching lenders, though sometimes you can change deals with your current provider. If you remortgage with your current lender, it typically involves changing your existing deal. Remortgaging can allow you to get a better interest rate and reduce your monthly mortgage payments. A remortgage allows you to consolidate existing loans into one manageable monthly payment or raise money to buy a new car or make home improvements. Homeowners looking to raise money for home improvements, buying a car, or other purposes often find that remortgaging is cheaper than taking out a personal loan or using credit cards. This is because mortgage interest rates are among the lowest of all types of loans. Homeowners may wish to raise money to consolidate other debts. By remortgaging your property, you could transfer several debts into one more easily manageable mortgage.