Following the Bank of England’s recent interest rate rise announcement, you may be wondering how to protect your finances and ensure you’re not spending more money than necessary on your home. If so, now could be a good time to remortgage. Here we share the benefits of remortgaging your property and explain how to go about it.
What does remortgaging mean?
Remortgaging involves switching the money you owe on your existing home loan over to a new mortgage. Sometimes this may see you moving to a different mortgage lender, but it can also involve staying with your current provider and just switching to a different deal.
What are the benefits of remortgaging?
Remortgaging your home can have a whole host of benefits if you’re willing to do your research and compare a multitude of deals. It can enable you to switch to a more affordable deal, reduce your interest rate, or free up cash to be spent on other purchases.
In the wake of the interest rate rise news, many homeowners are remortgaging their properties so that they can find the most affordable deal available to them and enter a fixed rate period to protect themselves from further interest rate increases.
How do I work out if remortgaging is right for me?
Remortgaging isn’t suitable for everyone. If you’re currently tied into a fixed rate deal, moving to a different mortgage may see you having to pay early repayment charges. Some mortgage providers will charge fees to cover the cost of the switch and these fees could eat into your savings. It’s wise to read the small print before making any big decisions and to do some calculations. An independent mortgage broker can help you determine if remortgaging is right for you, while doing all the maths on your behalf.
How do I remortgage my home?
The concept of switching to a different mortgage deal may sound daunting, but the good news is there’s plenty of help available to make the process that little bit easier for you.
Mortgage brokers, for example, can help you every step of the way. They’ll assess your finances, help you find the right mortgage deal for you, and guide you through the application process until you’ve officially remortgaged.
Will I definitely be able to remortgage?
Some homeowners encounter difficulties when remortgaging their properties. Problems can sometimes arise if the homeowner’s financial circumstances have changed since they obtained their first mortgage.
In recent years mortgage providers have been forced to tighten their lending criteria and conduct thorough financial checks before agreeing to lend to a customer. In some cases, this can see people who purchased property several years ago refused a new mortgage because the lending criteria no longer deems them eligible for the loan they want, even if they have a mortgage already.
If your financial circumstances have changed since you initially bought your home, it’s wise to consult a mortgage broker. They’ll know each lender’s criteria like the back of their hand and will be able to point you in the direction of the mortgage providers most likely to say ‘yes’ while steering you away from the ones likely to reject your application.
To learn more about remortgaging your property to protect yourself from interest rate increases, please get in touch with our team of mortgage brokers at TaylorMade. We can help you find the right deal for you while saving you time and money in the process.
