of new rates...
It’s becoming increasingly common for borrowers to remortgage their property in favour of a better deal. Some people remortgage to take advantage of new rates and more cost effective products. Alternatively, you might choose to remortgage to free up cash that can be spent on large life milestones such as weddings, holidays or university costs.
Remortgaging for a
better deal by speaking to a mortgage expert
Remortgaging allows you to switch to a different mortgage provider or product. By doing so, you can save money and often free up cash to be spent on large purchases.
If you’ve been with the same mortgage lender for some time, there’s a chance that you may be paying more than you need to for your home loan.
By speaking to an independent mortgage expert before remortgaging your home, you can choose from a wide selection of products with as little effort as possible. Your mortgage broker will guide you through the whole process and help you select the best deal for you.
Why should you
If you’d like to reduce your monthly outgoings or free up some of the capital you have in your property, remortgaging could be for you. Remortgaging your home can be a great way of making a substantial change to your finances.
You should look to
Your current deal is about to end
The best mortgage deals tend to only last a short period of time. With new offers frequently being added to the market, it’s wise to reassess your mortgage when your fixed rate is due to expire.
You want a better rate
If you want to reduce the amount of interest you’re paying on your loan, remortgaging may be the answer. However, you may have you pay an early repayment charge if you’re already tied into a deal. In some cases, these charges can be significant, so it’s worth doing some sums to calculate whether a remortgage will improve your finances.
Your homes value has increased considerably
If the value of your property has risen rapidly since you took out your mortgage, you may be able to reduce the amount of interest you pay by remortgaging to a better deal.
You are worried about interest rates increasing
If the Bank of England base rate is predicted to rise, you may choose to remortgage your property in order to keep your mortgage payments as manageable as possible.
You want to make overpayments
Most mortgage products allow customers to overpay their mortgage balance by 10% each year. However, some lenders penalise homeowners by charging early repayment fees. If you want to overpay your mortgage but your lender won’t let you, remortgaging could be a smart move.
TAYLORMADE TOP TIP
Schedule in a reminder at least 3 months before your current mortgage deal is set to expire. This will give you time to shop around and get your remortgage application completed in time for you to switch to a better deal. If you leave it too late, you may automatically be moved onto a potentially expensive standard variable rate (SVR).
At TaylorMade Finance, we search the mortgage market to find the best deal for your individual circumstances. After assessing your finances, we’ll compare every single product, looking at everything from interest rates to any cashback offers.
With the help of professional comparison tools we can find the best deal for you, saving you time and energy while also giving you peace of mind that you’ve found the right mortgage for your circumstances.
Can you remortgage?
Before you remortgage, you’ll need to check your existing deal for any restrictions which might prevent you switching to a new product. For example, if you are currently locked in a special deal, there may well be early repayment charges if you want to leave before the deal ends.
In some cases, the savings from remortgaging still outweigh these costs. If in doubt, get in touch with our team of experienced mortgage brokers. We’ll help you assess all your options and find the best solution for you.
A fixed rate mortgage charges a set rate of interest for a predetermined period. Once this period is over, the interest rate usually revers to the lender’s Standard Variable Rate (SVR).
Trackers are a type of variable rate mortgage which see interest rates rising and falling based on the Bank of England’s base rate. However, unlike traditional variable rate mortgages, a tracker mortgage doesn’t have to match the Bank of England’s rate exactly. Instead, the rate the borrower is charged is likely to be a little above the base rate.
An offset mortgage links the borrower’s savings to their mortgage balance. By choosing an offset mortgage, homeowners can reduce the amount of interest charged and potentially pay off the mortgage sooner.
A capped rate mortgage offers similar security to a fixed rate mortgage. The rate payable will be capped for the duration of an agreed upon period of time. During this time, the rate may rise or fall in line with market fluctuations, but it will never exceed the capped rate.
As a result, a capped rate mortgage enables borrowers to benefit from falling rates without placing strain on their budget as a result of unaffordable increases.
A cashback mortgage pays the borrower an upfront lump sum. This can enable them to pay for a costly expense such as home furnishings, a car or university tuition fees. The rate paid tends to be based on the bank's Standard Variable Rate (SVR).
A discount rate mortgage offers borrowers a reduction on the lender’s Standard Variable Rate (SVR) for a set period of time. The rate can fluctuate and so although the borrower will repay less than the SVR, their repayments could rise or fall.
A variable rate mortgage sees the interest owed rise or fall depending on the base rates set by the bank. When the base rate is low, borrowers may benefit from extremely low mortgage repayments. However, if the base rate increases, so too will the amount borrowers are expected to pay in interest.
Why choose us?
With our help, you can eliminate the stress and hassle commonly associated with remortgaging a property. Not only will we help you find the very best deal, we’ll also liaise with lenders, valuers and solicitors on your behalf, saving you time and money in the process.
How much does it cost?
The cost of remortgaging will depend on which deal you choose. Although you could save a substantial amount of money by changing your mortgage, it’s important to take the lender’s arrangement fees into account. These vary depending on the lender in question. Usually, valuation fees and legal charges will also need to be considered.
If you use TaylorMade to help you remortgage, we’ll charge commission or a fee of approximately 1% of the loan amount.
Your employment status has recently changed
In order to take on a new home loan, you’ll need to prove to lenders that you’ll be able to afford monthly repayments. If you recently left your job to become self-employed or you’ve switched from one company to another in the last few months, lenders may be reluctant to lend to you.
Worried you won’t be able to remortgage? All hope is not lost. We’ll use our extensive knowledge of the mortgage market to try and secure you a great deal.
You have a small loan
Some lenders will only accept a remortgage application if the loan required is above a certain figure. In some cases, the fees involved may exceed the value of the loan.
Your current mortgage has high early repayment charges
If you have recently taken out a fixed rate mortgage, you may find that the early repayment charges make it difficult for you to remortgage and make a worthwhile profit.
Is a remortgage right for you?
A payment reduction mortgage can help you in the short term whatever you need the money for. However, it can mean more interest charged over a longer repayment term.
There may be other ways to raise capital that are more suitable to you.
Your adviser will recommend the most suitable product for your needs.
Talk to us
If you're unsure and need some advice just give us a call, our expert team of advisers are available to help you choose the mortgage that is right for you.
Where you have a complaint or dispute with us and we are unable to resolve this to your satisfaction then we are obliged to offer you the Financial Ombudsman Service to help resolve this. Please see the following link for further details: http://financial-ombudsman.org.uk
Your home may be repossessed if you do not keep up repayments on your mortgage.
For mortgages we can be paid by commission, or a fee of usually 1% of the loan amount.
TaylorMade Finance Ltd is authorised and regulated by the Financial Conduct Authority.
The Financial Conduct Authority does not regulate Will Writing and some aspects of estate planning. Buy-to-Let Mortgages and Secured Loans.
The guidance and/or advice contained within the website is subject to the UK regulatory regime and is therefore primarily targeted at customers in the UK.