- Mortgages
Mortgages
Bad Credit Mortgages
- Shared Ownership
- Insurance
- Specialist lending
- About
- Events
Very rarely do you take out a mortgage and stick with the same one for the whole term – i.e. 30 years – until it’s all paid off and you’re mortgage-free (oh, the dream!). Instead, it’s much more likely you’ll find yourself looking to remortgage to take advantage of a new deal to suit your needs and current budget.
Each household is different and there are various reasons why you might look to remortgage. Perhaps you want to borrow more money, or maybe you’ve seen a better rate that you’d like to switch to.
Just be aware that sometimes, the lender will ask you to pay an early repayment charge before you can switch. It’s important to weigh up the price of the early repayment charge (sometimes referred to as exit fee or admin fee) against the costs you’ll be saving with the lower interest rate.
If you took out a fixed rate mortgage where you pay the same amount every month and the interest rate remains the same, once the initial term has ended (it would have been 2,3,5 years), you’ll fall onto a standard variable rate (SVR) where you could end up paying a higher interest rate than you were previously. This is usually the time when you might look to remortgage in order to switch to a better mortgage deal.
Perhaps you’re on an interest-only mortgage and you want to move to a repayment mortgage. Generally speaking, your lender should be able to change this for you without the need to remortgage but if they can’t offer you the deal you want, then you might consider a full remortgage.
You might have a higher paying job now than you did when you took out your mortgage, meaning you now have more disposable income and can afford to make overpayments, but perhaps your current lender doesn’t allow you to. Therefore, you might want to look at changing over to a new mortgage with a lender who will allow you to make overpayments.
Moving home can cause a lot of upheavals and can be very expensive by the time you’ve paid for all the fees and moving costs. Choosing to stay put and make home improvements can be a cost-effective way of getting the house you’d like.
In order to cover the cost of the improvements, whether for an extension, loft conversion etc., you might consider remortgaging. Don’t forget to do your research first though and weigh up the pros and cons of paying the early repayment charge, as you might find that a home loan is overall better for you than remortgaging.
Just be aware that your lender will want to know what you intend to use the money for and may ask to see the builder’s quotes etc. as evidence.
This depends on the lender, and why you are choosing to remortgage. Sometimes the lender will require you to pay an early repayment charge before you switch, which does add to the overall cost of remortgaging. However, this may be offset over time by the lower interest rate you find with a different lender.
For the most part, homeowners tend to remortgage to take advantage of their improved rate as they near the end of a fixed term mortgage deal. This better loan-to-value allows you to make reduced payments over the new mortgage term and can have a positive impact on your monthly budget.
No. Although remortgaging can be useful to help free up money, reduce your monthly bills or help you borrow more money, not everyone needs to remortgage.
If you want to know more, feel free to get in touch with us and our experts will be happy to help. With mortgage and protection advisers in Winchester, Southampton, Farnham, Bishops Waltham, Alton, Chandlers Ford, Alresford, Romsey, and Park Gate, you are never too far from mortgage help.
Your home may be repossessed if you do not keep up repayments on your mortgage.
There may be a fee for mortgage advice. The actual amount you pay will depend upon your circumstances.
The fee is up to 1% but a typical fee is 0.3% of the amount borrowed.
I would recommend using Mortgage Decisions as they made the process of choosing my first mortgage so easy to understand . They were very knowledgeable on all the products available ,but mostly they were prompt . Thank you in-particular to Toby and Louis.
Lindsay BAs a first time buyer, I was in the dark on how the process worked but having the support Beccy and Mark throughout made our journey a lot easier. Both friendly, approachable and knowledgeable a broker. I would recommend.
Jonathan PMy request to renew my existing mortgage with Mortgage Decisions was superbly handled by David who is a most knowledgeable person. I was impressed with his professionalism and his attention to detail. The end to end process was explained throughout by David in particular the various options available to me. This is the second time that Mortgage Decisions have assisted with my mortgage and I wouldn’t hesitate in asking them again in the future.
BarneyKevin and Beccy have been extremely helpful - firstly in exploring viable options to suit my situation and secondly keeping me in the loop and dealing with queries that arose along the way. This is my second mortgage with them, both of which had possibly unusual elements and they were able to navigate me through them and find me good mortgages.
Thea ELouis and Toby have been extremely helpful, They offered us advice and guidance throughout the whole process and they couldn't have done a better job. The service we received was exemplary.
Ciara M
