Your mortgage may be the biggest financial transaction you make in your lifetime, so its important to take the necessary steps to pay it off as quickly as possible.
Has your current deal reached its end? Are your mortgage payments due to go up? Get in touch with us today, our impartial advice can help in securing the next stage of your mortgage.
We're experts in best rate remortgages!
Remortgaging is simply a process of getting a new mortgage to replace the one you already own; on the property you are already purchasing. It may be with your original lender or a new lender, but it must be once you have satisfied any of the original lenders’ terms in the mortgage contract.
These terms may involve time periods in which you have agreed to stay with a lender in order to take advantage of low initial interest rates with them. You may be tied in for 2-5 years, for example, whilst you had the fixed interest rate and you may have to pay an early settlement or redemption fee to exit this agreement.
The Mortgage Library remortgage advisors can offer free initial advice about this and study your mortgage to discover what these costs might be.
People decide to remortgage for various reasons.
It may be cheaper to remortgage to a better deal in the same way as switching utility providers, to save money, especially after an introductory low rate mortgage interest period has ended. The rate then rises to whatever the lenders’ standard rate is and this may be high. You could save money by remortgaging at this point and The Mortgage Library remortgage advisor could help you make the best choice, going forward.
Some people may wish to remortgage in order to use part of the money in the property’s equity, by releasing it through borrowing and adding this to the mortgage. This often happens in areas where house prices have risen considerably and you may want some money for home improvements, for example.
You may even wish to save money on your repayments and release equity if you change to a lender who is offering you a good deal. The Mortgage Library advisors can show you these lenders and explain how much you could borrow.
Borrowing does depend on what your regular financial commitments are as well as how much equity there is in your property. The Mortgage Library broker can explain the ‘loan to value’ (LTV). The LTV is calculated by discerning the up to date value of the property compared to the size of the mortgage loan taken out against it. A lender will be influenced by this LTV, the percentage difference deciding how much you can achieve.
It is also important to discover when you can remortgage as most lenders won’t offer mortgages in the first 6 months and some may use the original property valuation to decide the loan to value. Let The Mortgage Library advisor check this out for you. It may even be worth talking to The Mortgage Library 3 months before you think your initial deal ends with the lender, just so that you can get the advice needed to be remortgage ready.
Sometimes the thought of remortgaging brings up negative thoughts of tricky questions and difficult paperwork. This does not have to be the case, especially with help from The Mortgage Library help. The benefit of saving money or taking out much needed monies can be life changing.
Help is always a call, text or email away with The Mortgage Library and the checks they run make sure you do not face extra charges when you change your mortgage lender. They may even decide that remortgaging may not be the best route for you, Their advice is astute and impartial.
When you took out your original mortgage, your financial situation may have been such that you could only borrow a certain amount. Since then, you may have had extra income through increased wages and promotion or even received a gift or a windfall. You may want to change the term of your loan and be mortgage free sooner. You may have domestic reasons for buying out a partner or need money for further education. All these issues can be discussed with The Mortgage Library remortgage advisor who will continue to help throughout the term of a mortgage secured via their brokers, whatever the change of circumstances may be.
By contacting our remortgage specialist at The Mortgage Library, you can be helped with all areas of remortgaging your property, from property valuation to remortgage offer. We can help you understand the mortgage process and get the best rate. We will look at your original mortgage contract and discuss when you can move forward to remortgage as well as how much you could remortgage for. We offer free no obligation advice. We can help put in place the process needed to achieve your best remortgage option, once we are certain that a remortgage is going to help your individual situation. If you find that there are debts you cannot consolidate with a remortgage, you may wish to seek further advice here (https://www.moneyadviceservice.org.uk/en/articles/options-for-clearing-your-debts-england-and-wales
By Mollie Rising | 11 April 2020
Covid-19 is affecting us all now, including those [...]