pro's & cons
Why would you consider remortgaging? is it a good idea? what are the downsides? lET'S FIND OUT...
Lets talk about Remortgaging
What is remortgaging?
Remortgaging, also known as refinancing, is the process of switching to a new mortgage loan with a different lender. It is a popular option for homeowners in the UK who are looking to save money on their monthly mortgage payments, access equity in their home, or change the terms of their mortgage. However, it is important to carefully consider the potential advantages and disadvantages of remortgaging before making a decision.
Advantages of Remortgaging
Lower monthly mortgage payments
One of the main benefits of remortgaging is the potential to save money on monthly mortgage payments. By switching to a mortgage with a lower interest rate, homeowners can potentially reduce their monthly payments by hundreds of pounds. For example, if you have a mortgage with an interest rate of 4% and you are able to switch to a mortgage with an interest rate of 3%, you could save around £110 per month on a £150,000 mortgage over a 25-year term.
Access equity in your home
If the value of your home has increased since you took out your original mortgage, you may have built up equity that can be accessed through remortgaging. Equity is the difference between the value of your home and the amount you still owe on your mortgage. Some homeowners choose to remortgage to access this equity and use it for home improvements, debt consolidation, or other major expenses.
Change the terms of your mortgage
Remortgaging allows homeowners to tailor their mortgage to their current needs and goals. This may include changing the length of the mortgage term, switching from a fixed to a variable interest rate, or adding or removing features such as mortgage insurance.
Disadvantages of Remortgaging
Remortgaging can involve various fees, such as an application fee, valuation fee, and legal fees. It is important to carefully review all of the fees associated with remortgaging and compare them to the potential savings to determine if it is a worthwhile investment.
Penalties for breaking your current mortgage
Some mortgages come with early repayment charges, which means you may have to pay a fee if you switch to a new lender before the end of your current mortgage term. This can be a significant disadvantage if you have a large remaining balance on your mortgage and the early repayment charge is a significant percentage of the balance.
Credit score impact
Applying for a new mortgage involves a credit check, which can temporarily lower your credit score. If your credit score is already low, it may be difficult to qualify for a new mortgage with a better interest rate.
Should you consider remortgaging?
The decision to remortgage should be carefully considered and based on your individual financial situation and goals. It is important to shop around and compare offers from multiple lenders to find the best deal. It may also be a good idea to consult with a financial advisor or mortgage broker to help you determine if remortgaging is the right choice for you.
WHY USE A MORTGAGE ADVISER?
Dedicated Professional Advice
You will have a named adviser who will get to know you. They are experienced and qualified to provide you with all the help and advice you need throughout the process.
We deal with the banks
No one likes having to deal with the banks. They will almost always ask you questions during your application and we are ideally placed to answer them. Over 15+ Years of experience and 1000's of Mortgage Applications has helped us do this very effectively.
You will never become a number, not like dealing with a bank directly. Having to explain yourself over and over again to whoever picks up the phone. You will deal with us directly, we do all of the heavy lifting.
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Our Average hold time is less than 10 seconds. We spend hours on hold to the banks so you don't have to. This could have you hours of time.
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