Five reasons to remortgage your property

Why should I remortgage?

It might be that you want to remortgage your property, but you’re not sure whether it’s the right thing for you, below we’ve listed Five reasons to remortgage your property. There are others but these are the most common. We’ve also talked about some of the risks you need to be aware of, which you’ll find at the bottom of this page.

1. Your current deal is coming to an end

Most mortgages have an initial deal (fixed, tracker or discounted variable) that lasts for between two and five years. Then the rate rolls onto the lenders Standard Variable Rate. Standard Variable Rates are often much higher than the rates you pay on the initial deal. So, make sure you start researching into a new deal at least three months before yours is about to end to ensure you find the most appropriate one for you and to allow you time to make the switch before you start paying the higher rate.

2. Because you want to find a better deal

You may think you’re paying too much for your mortgage and therefore want to see if you can find a better deal. If you’re on a fixed-rate mortgage deal, you may have to pay an early repayment charge or an exit fee to repay your existing mortgage, so it’s important you weigh up the overall costs versus savings before deciding to switch.

3. You want to borrow more money

Mortgage providers will permit additional borrowing for a variety of reasons, including home improvements, raising capital for a deposit on a buy-to-let property or even holidays and cars etc. Remortgaging your property to borrow more money might be a cost-effective solution. Remember, lenders will want to know what you are borrowing the money for and you’ll need to check all charges to ensure it’s the most suitable way to borrow money.

4. You’re separating from your partner

In the unfortunate event of a breakup, you may think the only solution is to sell your home. However, depending on your ability to afford the mortgage on your own, remortgaging to raise money to buy-out an ex-partner is possible and permitted by most lenders. Again, its important you consider the costs involved in repaying the existing mortgage and the costs of the new mortgage.

5. You worried about interest rates increasing

The Bank of England sets the bank rate (or ‘base rate’) for the UK. If you’re concerned about rates increasing again in the future, then it may prudent to review your mortgage arrangements and consider remortgaging.

Speak to Your Mortgage Expert

As always, we would advise you to speak to a mortgage adviser like Your Mortgage Expert who will take the time to fully go through all the pros and cons associated with remortgaging. If you want to speak to us about this, then please do get in touch.

Things to be aware of if you’re thinking about remortgaging

When you speak to your mortgage adviser, they will ask you questions about your current mortgage and your overall circumstances in detail and highlight all the risks associated with remortgaging. These are the sort of questions you should be asking your mortgage adviser:

Is there an early repayment charge to repay my existing mortgage?
What are the fees payable for the new mortgage?
Can I afford to remortgage?
Will the new deal save money?

Thinking about remortgaging your property?

If you are thinking about remortgaging your property, why not speak to one of our mortgage advisers? We are based in Salisbury City centre, but we can help you no matter where you live in the UK.

We are impartial and can research mortgages from the whole of the market and can even arrange mortgage deals that are not available by going direct to the lender. We will do all the research, find the most suitable deal and arrange the mortgage for you.

Whatever you are looking for from your remortgage, whether you want to fix your rate for two years, five years or arrange something more flexible, Your Mortgage Expert can review your circumstances and give you the most appropriate mortgage advice based on your circumstances. We can also organise Product Transfers.

To speak to a member of the mortgage advice team about your next mortgage, ring us now on 01722 322683 or complete a contact us form and let them know when we can call you back.

We don’t charge for an initial consultation, so by speaking with us, you won’t be under any obligation. To find out more about our services and how we operate, visit our about us section.

The information contained within this article was correct at the time of publication. It is intended for information only and should not be used as a basis for purchasing any products. We cannot be held responsible for something that was correct at the time but subsequently changes or goes out of date. For further information, contact Your Mortgage Expert on 01722 322683.

A MORTGAGE IS A LOAN SECURED AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE OR ANY OTHER DEBT SECURED ON IT.

YOU MAY HAVE TO PAY AN EARLY REPAYMENT CHARGE TO YOUR EXISTING LENDER IF YOU REMORTGAGE.

There may be a fee for mortgage advice. The actual amount you pay will depend upon your circumstances. The fee is up to 1% but a typical fee is 0.3% of the amount borrowed.

Our handy mortgage calculator

Our mortgage calculator can help you get a better idea of how much you can afford to borrow, and how much your mortgage will cost you in monthly repayments.

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Max and Martha, First Time Buyer customers from Cardiff
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Callum and Verena, First Time Buyer Armed Forces Mortgage Customer from Salisbury
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Andrew and Helen, Armed Forces Mortgage Customers from Salisbury
“Even though we were used to having a mortgage on the rental property, paying a mortgage on your own home was still a bit of a shock after years of having married quarter rental deducted from your pay at source. But, at every step along the way, we felt reassured, understood and that we really mattered to Adam. Trust is an important concept for military families and we trusted Adam.”

Fiona and Graham, Armed Forces Mortgage Customers from Wilton
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Andrea, Contractor Mortgage Customer from Warminster
“I am a contractor, therefore require specialist mortgage advice. Adam has now concluded two mortgages for us (new mortgage then a contractor remortgage), and is currently arranging a buy-to-let mortgage for us. He also arranged our life insurance for us. We keep returning to him for some great reasons – he is always available, and ready to help. He provides great advice, and always ensures that he meets our requirements exactly. He is prepared to explain things in such a way that even a lummox like me can understand, and his level of service has remained consistently good over the last three years.”

Matt, Contractor Mortgage Customer from Southampton
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Hannah and Steve, Protection Insurance Customers from Stamford
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Saul and Laura, Home Mover Mortgage Customers from Salisbury
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Mike and Bethan, First Time Buyer Mortgage Customers from London
“Without question Adam found me a deal the estate agent’s broker couldn’t. He was very easy to contact whenever I needed him and he took time to explain the ins and outs of the Help to Buy equity loan scheme mortgage that he found me. I would rate him five out of five and will be back to use him when the time comes to remortgage or move.”

Chris, Help to Buy Mortgage Customer from Southampton