What is Remortgaging?
A remortgage is simply switching over lender or discovering a better provider of your existing loan which can significantly cut your monthly outgoings. Securing a new mortgage against your home can allow you to use the money to pay off the previous current mortgage (essentially moving it) to your new loan provider. Remortgaging may be a good option for property owners and can be an excellent way of ensuring you the most suitable mortgage deal.
Remortgaging can lower your current mortgage by making use of lower mortgage rates and much better mortgage offers. It can also allow you to decrease your regular monthly payments and simply have one controllable payment. Remortgaging effectively maximises finance which can be utilised to settle debts, remodel, or allow you to consider a buy to let home* by providing the finance required. If your home has risen in value, remortgaging enables you to utilise the additional equity in your house.
How can Police Mortgages Help?
Just like all mortgages, there are a multitude on the market, each with its own ‘pros and cons’. The task of a credible mortgage broker such as Police Mortgages is to compile all these mortgage deals for you, quickly and specifically to find you the most suitable mortgage deal for your individual circumstances.
- Police Mortgages we have access to thousands of mortgage deals and can recommend the most suitable deal for your individual circumstances and requirements.
- Remortgaging may not be a suitable option for everyone. We can help you weigh up the potentials saving and costs involved to find the right solution for you.
- Save the stress and hassle of comparing different deals - let Police Mortgages do the hard work for you!
Coming to the End of a Fixed Rate Deal?
Many UK homeowners are remortgaging in order to reduce their monthly payments. It only takes a short assessment of your circumstances to find out what options are available and how much you might be able to save. If you're nearing the end of your current fixed rate deal, it's the perfect time to consider changing your lender - make an appointment with Police Mortgages to find out how much you could save.
Things to Think About Before Remortgaging
Remortgaging isn’t a suitable option for everyone - it will depends on your personal circumstances, timing and a concern of money. Police Mortgages will assist you to decide whether changing deals will exceed the expense. Important things to consider when thinking about remortgaging include:
An early repayment charge (ERP), normally a percentage of your mortgage balance has to be paid if you are currently in a fixed rate deal and want to leave before the end.
Other costs of remortgaging include an exit fee payable to your old provider and valuation and set up fees to your new lender.
Changes to the way people are assessed for mortgages and personal changes to your finances or work will affect whether you are accepted by a new lender.
Releasing equity from your property will increase the amount you are borrowing and in turn your monthly mortgage payments will rise.
Do your sums carefully when considering releasing money to pay for a project or consolidate debt. Although your mortgage may have a lower interest rate than a credit card or loan, it is borrowed over a longer period of time so may cost more in the long term.