Need Remortgage Advice? Our Experts Are Here to Help

What is Remortgaging, and Why Should I Consider It?

If you’ve not heard or thought about remortgaging before, here’s a quick overview.  Essentially, a remortgage is taking out a new mortgage on a property you already own andor have a mortgage for. It’s especially important to consider if your current mortgage is coming to the end of its current deal – if you don’t remortgage in good time, you could face a considerable hike in your payments if your mortgage reverts to the lender’s, often higher variable rate.  

There can be a number of reasons for remortgaging, but one reason could be to replace your current mortgage deal – with the aim of getting you better interest rates or terms.  It’s typically worth considering as you come to the end of your current fixed rate deal with a lender or if your financial or personal circumstances have changed.

When is the Best Time to Remortgage?

It’s worth starting to think about remortgaging during the final 6 months of your current mortgage deal.  During this time, it’s a great idea to do your research – take a look at current offers and compare rates across the market so you can have an informed conversation with an expert to get the best remortgage advice for your situation.

Again, make sure you do this in good time so you can avoid a move to the lender’s standard variable rate – in some instances this can be a considerable jump leading to much higher mortgage payments. As an example you could be currently on a  from a fixed rate of 3% then move to the lenders Standard Variable rate ofto 7.5% – leaving you with a huge increase in payments if you leave it too late.

It’s worth reviewing your mortgage around 6 months before the end of your deal. That way you can ensure you are getting the most competitive rate and, at The Mortgage Broker, we can work with you to ensure you have the option throughout the 6 months to switch another rate – we are happy to review this with you whenever you ask us to.

Could Remortgaging Save Me Money?

In a word, yes.  You may be able to switch to a new mortgage deal with a lower interest rate, which could reduce your monthly payments, or you could even gain access to some additional features which might better suit your financial situation right now.  Let’s take a look at an example of what this could mean for you.  This example is based on a mortgage of £250,000 over 25 years and calculations made using our mortgage repayment calculator

You can see from this example that there are significant amounts of savings potentially available to you if you consider remortgaging – and just look at the eye-watering difference between a fixed rate and SVR!  Of course, this only details potential savings in terms of interest rates – there may be other benefits to consider too.  These can include releasing some equity in your home for some improvements or possible debt consolidation too.  You should also consider remortgaging if you want to shorten your mortgage term.

Are there Any Downsides to Remortgaging?

It’s important you are aware that whilst you could save money if interest rates are more favourable when you remortgage, there is also the possibility they could go up too. 

Over recent years we’ve seen a large amount of volatility in the mortgage market and the key to navigating through some of the complexity is to work with a qualified and regulated remortgage advisor.  Like in our example above, there are also some fees you need to be aware of – some lenders may charge you additional valuation and legal fees or an early repayment charge if you are still within your fixed-rate deal. 

Again, working with an expert remortgage advisor is recommended to help spot these potential pitfalls and get the best remortgage advice available to you.

Do I Have to Pay?

Some brokers will charge for their remortgage advice and we do at The Mortgage Broker.  But included within your fee you’ll get access to the following:

•         A dedicated expert who will work with you directly to understand your goals and personal situation
•         Constant monitoring of the market – meaning we’ll be able to flag the best deals to you before anyone else
•         Remortgage advice for the long-term.  We want to work with you now and in the future and so we’ll always consider your longer-term aims in everything we advise

How Long Will I Have to Wait for My Remortgage to Be Confirmed?

This varies across lenders and remortgage deals but working with an advisor means they can look after your application on your behalf.  It’s sensible to expect anything from a couple of weeks up to a couple of months to have your remortgage confirmed and in place.  Again The Mortgage Broker will be with you every step of the way – and we make sure we update you at every milestone so you’re completely in the loop.

How to Remortgage with The Mortgage Broker

A mortgage broker looks at mortgage rates a hundred times a day, we eat, sleep and breathe mortgages. A broker will find be able to secure a rate for you far quicker than you will be able to do on your own.

We get constant notification from lenders across the entire country if rates are going to change. We can even switch you onto a lower rate after the initial rate of a remortgage has been secured. If the rates happen to increase then it doesn’t matter, because we will have secured you on a lower rate initially.

The benefits of working with someone who makes it their business to know the ins and outs of the mortgage world ensures that you’ll get  the absolute best rate possible, every time.

Is Now a Good Time to Remortgage?

This is a difficult question to answer – it will vary depending on your personal circumstances and what’s going on in the market.  Again this is where working with an expert who can provide you with independent remortgage advice can be crucial – they can help you identify if remortgaging could be advantageous for you.  Potential good times to remortgage could include:

•         When you are at the end of your mortgage deal
•         If interest rates have come down since you took out your mortgage
•         You want to release some equity from your home

Heard enough and want to take action today?

Contact us here to speak to a knowledgeable and friendly advisor today.  And our easy-to-use mortgage finder can give you an idea of what’s available in seconds.