What is remortgaging?
Remortgaging is when you change your mortgage without moving home. You do this by paying off the original mortgage with the proceeds of the new one, using the same property as security. Why should I remortgage? There are several reasons why people remortgage.
The most common are:
- Your mortgage deal has come to an end and you have been placed on your lender’s standard variable rate (SVR) Your existing deal is nearing its end and you will soon be placed on your lender’s SVR
- You want to reduce your monthly repayments
- You need to borrow more money, maybe for home improvements or to pay off other debts
- You want to change to a different type of mortgage
When’s the best time to remortgage?
You can remortgage at any time but it’s best to choose a time when there's a definite advantage in moving mortgages.
This may be when:
- You've come to the end of a fixed rate mortgage deal Interest rates are lower than the rate you're paying at the moment
- The value of your home has significantly increased
- The benefits outweigh the costs
Am I eligible to remortgage?
When you compare remortgage deals with us, you’ll be asked six short questions so that we can show you the most relevant deals based on your loan-to-value, including mortgages from your current lender.
You’ll also have the option of answering a further set of questions, which will allow us to remove those mortgages you won’t be eligible for from your results, giving you a better idea of the mortgages you can apply for. This doesn’t mean you will definitely be accepted for the mortgages you see in the results table, but it does mean you are eligible to go on to apply for these.
The lender or our mortgage broker will be able to advise you on your full mortgage eligibility.
What are early repayment charges?
With some mortgages, if you pay off the borrowing earlier than agreed, you may have to pay an early repayment charge (ERC). The exact amount depends on the type of mortgage you have and your lender. ERCs tend to apply to fixed rate mortgages more often than variable rate mortgages. They may apply for the entire length of the fixed rate but in some cases the ERCs decrease over the term of your mortgage.
Early repayment charges can run into several thousand pounds and it’s important to understand how much you’ll need to pay before you commit to a new mortgage deal.
Contact us now to learn more https://www.firstclassmortgages.net/the-remortgage-expert-for-homeowners-in-eastbourne-sussex.html
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP WITH YOUR REPAYMENTS