• Why Remortgage ?

  There are several reasons to consider remortgaging :

  • Saving Money :

    If you’re currently on your lender’s standard variable rate, there might be cheaper deals available.

  • Changing Needs :

    Maybe your current mortgage no longer fits your requirements. You might want a mortgage that allows greater overpayments or flexible payment options.

  • Borrowing More :

    If you need to borrow additional funds, but your current lender won’t accommodate it.

• Ideal Criteria :

  Before remortgaging, ensure you have :

  • Decent Equity:

    Having a good amount of equity in your property is crucial.

  • Good Credit Score :

    A positive credit history increases your chances of approval. Be prepared for slightly higher rates if you have adverse credit.

  • Affordability :

    Be prepared to prove you can handle repayments even if rates rise.

• Current Situation :

  Depending on your circumstances, it might not be the best time to remortgage.

• Fees :

  Understand the fees associated with remortgaging.

• Product Transfer :

  Sometimes, staying with your current lender and opting for a new deal (product transfer) can be beneficial.

1. Reduced Monthly Payments :

   By switching to a lower interest rate, you can potentially reduce your monthly mortgage payments. This frees up more money for other expenses or savings.

2. Access to Better Rates :

   If your current mortgage deal is about to expire, remortgaging allows you to explore new deals with competitive interest rates. You might find a better offer than your existing one.

3. Debt Consolidation :

   Remortgaging can help consolidate other debts (such as credit cards or personal loans) into your mortgage. This simplifies your finances and may result in lower overall interest payments.

4. Home Improvements :

   Use the equity in your home to fund renovations, extensions, or other home improvement projects. Remortgaging provides a way to access additional funds for these purposes.

5. Flexible Features :

   When remortgaging, you can choose features that suit your needs, such as offset accounts, flexible repayment options, or the ability to overpay without penalties.

6. Switching from Interest-Only to Repayment :

   If you currently have an interest-only mortgage, remortgaging to a repayment mortgage ensures that you gradually pay off the principal amount, building equity in your property.

7. Avoiding Standard Variable Rates (SVRs): :

   After your initial fixed or discounted rate period ends, you’re usually moved to the lender’s SVR. These rates tend to be higher, so remortgaging can help you avoid them.

8. Changing Circumstances :

   Life changes (such as a new job, marriage, or family expansion) may require a different mortgage. Remortgaging allows you to adapt to your evolving needs.

Remember that remortgaging involves costs (such as arrangement fees, legal fees, and valuation fees), so it’s essential to weigh the benefits against these expenses. Always seek professional advice before making a decision.

1. Six Months Before Your Fixed Rate Ends :

   Start considering remortgaging approximately six months before your fixed-rate mortgage deal expires. This allows you to explore options, initiate the application process, and secure a new offer in advance¹.

2. Avoid Standard Variable Rates (SVRs) :

   If your current mortgage’s initial term is ending soon, be cautious. Most lenders will automatically transfer you to their more expensive standard variable rates (SVRs), which can be around 7.5% to 8.5%. To avoid this, lock in a new mortgage deal to start immediately after your existing one ends².

3. Hedge Against Rate Changes

   Recent changes allow you to lock in a new mortgage offer up to six months before you need it to begin. For instance, even if your deal expires in June, you can secure February’s rate and continue with your current mortgage provider until then. If rates rise, you have a cheaper deal locked in; if they fall, you can explore better rates closer to your remortgaging date².

4. Product Transfer vs. Remortgaging :

   Consider both options :

   • Product Transfer :

     A simple process with your existing lender, Check for any upfront fees

   • Remortgaging to a New Lender :

     Available up to six months in advance. Be aware of upfront costs like valuation, arrangement, or legal fees².

5. Evaluate Your Financial Situation :

   Remortgage when it leads to an improved financial position. Factors to consider :

   • Loan-to-Value (LTV) :

     Dropping an LTV band can make your mortgage cheaper.

   • Borrow Less :

     Consider contributing your own funds if you’re close to the next LTV band.

   • Higher Valuation :

     Higher Valuation: Explore ways to increase your property’s valuation²³.

Remember to seek professional advice and assess your specific circumstances before making a decision.