Low interest rates, high London house prices, and the increase in
the range of mortgage and remortgage products over the past few years due to increased
competition have meant that there has never been a better time to review
your existing mortgage arrangements.
To put it simply, there is a good chance you could save money by remortgaging.
Remortgaging means switching to a different mortgage deal. This could be with your existing mortgage lender, but more often than not it will be with a different bank or building society. Our mortgage specialists can help you find the best deal.
In the past, many people never bothered to remortgage, but it looks like that situation is finally changing. According to the Council of Mortgage Lenders, in January 2003 (for the first time ever) remortgages accounted for more than 50% of the total monies advanced by mortgage lenders.
One of the most common reasons for remortgaging is to reduce costs. By switching to a lower interest rate you can either benefit from lower monthly repayments, or keep the monthly repayments the same, thus repaying the loan quicker and reducing the overall term of the mortgage. You can use a remortgage calculator to get an idea of how much you could save by remortgaging.
Another reason to remortgage is in order to raise additional cash.
Due to the rapid rise in property values over the past few years, many people now have mortgages which are well below their home’s current value. The difference between the property value and the mortgage debt is known as equity. The majority of mortgage lenders will allow you to increase the size of the mortgage in order to tap into some of this equity. The cash raised can be used for a variety of purposes, such as home improvements, holidays, a new car, or the consolidation of existing debts.
In the current market, it is not uncommon for someone to be able to raise an additional £20,000 against their property and still save money on their monthly repayments. To get an estimate of how much you could borrow, click here.
Unlike moving house, arranging a remortgage can be surprisingly hassle-free. There are no chains of buyers to worry about, so the whole process can often be completed in a few weeks.
In terms of costs there is no stamp duty to be paid, as you are not purchasing a property. Many lenders will pay some or all of your valuation and legal fees.
In some cases there may be an arrangement fee or booking fee from the new lender. There may also be redemption penalties on your existing mortgage and you will need to take these into account when assessing how much money you could save by remortgaging.
Your mortgage is probably your biggest single financial commitment, so it makes sense to spend some time ensuring you always have the best possible deal. For a free no-obligation assessment of whether remortgaging is right for you, please contact us and we will put you in touch with a member of our panel of professional remortgage specialists.
This website is provided as an independent marketing website.
We are neither a mortgage lender nor an independent financial adviser and, as such, are unable to offer financial advice.
Enquiries generated via this website are passed on to independent financial advisers and mortgage brokers.
Think carefully before securing other debts against your home.
Your home may be repossessed if you do not keep up repayments on your mortgage.
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