A remortgage is an ideal opportunity to review your financial arrangements. Contact us to review your options and see if we can secure a cheaper deal for you.
You may have grown accustomed to paying the same amount for your mortgage each month and feel it is unnecessary to go through the hassle of changing it. Unfortunately, this can end up putting your mortgage in control of the bank and push up your monthly payments when that introductory deal switches to a standard variable rate.
Standard Variable Rate
Paying the standard variable rate of interest on your mortgage payments means your monthly mortgage will not only be more expensive than the best products on the market, it may mean your monthly mortgage payments keep going up. This is often the case when the Bank of England Base Rate rises in response to inflationary pressures on the economy or other factors.
Remortgaging puts you back in control of your mortgage by allowing you to arrange a better deal and a lower interest rate that can be fixed or track the Bank of England Base rate. A remortgage can also be used to make the most of the equity you will have built up in your property and enable you to factor in any rise in property prices.
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These questions help give some guidance to buyers from all angles of the property ladder. If you have any questions that aren’t covered opposite or if you would like a little more clarification on any of the points discussed, our team of experienced advisors are on hand to help you through any part of the buying process
Remortgaging is where you take out a new mortgage on your home. In most cases, this simply means swapping your existing mortgage for another deal that’s more favourable based on your current circumstances. Remortgaging can also be used to release equity in your house.
When remortgaging, you have two options: you can either stick with your existing mortgage lender or switch to a new lender. Obviously, your current mortgage lender will want to keep you as a customer, but it’s always worth shopping around and weighing up all the remortgage options that are available to you.
Just like when you took out your original mortgage, remortgaging is a huge financial decision that requires careful thought and number-crunching, so it’s a good idea to seek expert advice before pulling the trigger. At Green Mortgages, we can help you to find the right remortgage deal for you.
To get a better mortgage. Remortgaging is a popular option for homeowners who have a fixed rate mortgage and their introductory term is about to expire. This introductory term gives you better rates but it only lasts a few years, usually between 2 to 5 years. When it expires, by default you’ll be placed on your lender’s standard variable rate, which can have much higher interest rates that will fluctuate month to month. In this situation, remortgaging allows you to get a more competitive deal, avoid an unexpected hike in your monthly repayments and put you back in control of your mortgage.
To borrow more money. Remortgaging allows you to release equity in your house. Because the loan is secured against your home (collateral), you can borrow a sizable amount of money at more competitive rates compared to other types of loans. Perhaps you need to fund home improvements, pay for tuition fees or cover the cost of a wedding.
Your home’s value has changed significantly. If the value of your property has increased since you originally took out your mortgage, your loan-to-value ratio (the size of your mortgage versus the value of your house, expressed as a percentage) will be lower. As a result, you’ll be seen as lower-risk to lenders and will be able to get more competitive interest rates.
Your financial circumstances have changed. Perhaps you’re unable to work (due to redundancy, accident or illness) and are no longer able to keep up with your monthly mortgage repayments. Remortgaging allows you to get a new deal that’s better suited to your change of circumstances, such as allowing you to temporarily reduce or suspend your monthly payments without being penalised. Alternatively, your financial situation may have improved — perhaps you’ve had a pay rise or received an inheritance. You might want to put this money towards paying off your mortgage, but your current mortgage carries high penalty fees for paying off too much too early (or they may forbid you from overpaying altogether). Remortgaging can give you the level of flexibility you want.
You can save money. By remortgaging and getting better interest rates, you can lower your monthly payments and reduce the amount of interest you pay overall. It’s worth noting, however, that remortgaging requires you to “back out” of your current mortgage deal, which may incur exit fees and early repayment charges. You need to do the sums and make sure that the savings you can make from remortgaging are worth these costs.
You get more flexibility. If your financial situation has changed (for better or worse), your current mortgage may no longer suit your circumstances. Perhaps you’re temporarily out of work and need to lower or suspend your mortgage repayments. Or maybe you’ve come into more money and want to overpay your mortgage without incurring hefty fees. By remortgaging, you can get the flexibility and breathing room you need without being penalised for it.
Whether the introductory term of your fixed rate mortgage is about to expire and you want to avoid those standard variable interest rates, or it’s been a while since you’ve reviewed your finances, Green Mortgages is here to help you remortgage.
We’re independent, whole-of-market mortgage brokers in Cheshire with access to over 140 lenders, meaning we have a huge pool of options to choose from. Thanks to our long-standing connections, we can even offer you exclusive mortgage deals that you won’t find by going straight to lenders.
Our team of experienced, friendly and professional mortgage advisors will sit down and discuss your situation so that we can find the most suitable mortgage solution and save you money. We pride ourselves on our excellent customer service and here to guide you through the entire process, making a potentially stressful and complicated situation as smooth, swift and simple as possible.
If you’re looking to remortgage in Cheshire, get in touch with Green Mortgages today.