Remortgaging is the process of switching your existing mortgage to a new lender or borrowing additional funds against the value of your property.

If you’re considering remortgaging your home, you’re probably wondering what it entails and whether it’s the right financial decision for you.

In this blog, we’ll provide a comprehensive overview of remortgaging, including what it is, why people choose to do it, and the steps involved in the process.

We’ll also cover some important considerations when deciding whether to remortgage, and why working with a mortgage broker could be beneficial. 

Whether you’re a homeowner looking to lower your monthly mortgage payments, need to borrow more money for home renovations or other expenses, or just want to take advantage of lower interest rates, remortgaging can be a useful tool to achieve your financial goals. 

Reasons you may consider a remortgage

• Lower monthly payments: By switching to a mortgage with a lower interest rate, you can potentially reduce your monthly payments and save money in the long run. It’s important to compare rates from multiple lenders to find the most suitable deal.
• Access equity: If your home has increased in value since you purchased it, you may borrow additional funds against the equity in your home through a remortgage. This can be a useful option for homeowners looking to finance home improvements or pay off high-interest debt.
• Consolidate debt: If you have high-interest debt, such as credit card balances or personal loans, you may consolidate that debt by remortgaging. This can make it easier to manage your debt and potentially save you money on interest payments.
• Switch to a better mortgage product: If your circumstances have changed since you took out your current mortgage, you may find a mortgage product that better suits your needs by remortgaging. For example, if you’ve recently started a family and need a longer mortgage term to lower your monthly payments, you may switch to a mortgage with a longer term.
  
  

Before deciding to remortgage, it’s important to carefully consider the costs and benefits. It’s also important to shop around and compare rates from multiple lenders to ensure you’re getting the most suitable deal. 

While remortgaging can offer the opportunity to secure a lower interest rate or access additional funds, it can also come with some drawbacks. Some of these include:

Drawbacks of remortgaging

• Fees: There are typically fees associated with remortgaging, such as legal fees, valuation fees, and early repayment charges on your current mortgage. These fees can add up, so it’s important to carefully consider whether the potential savings from remortgaging are worth the upfront costs.
• Credit score: Applying for a new mortgage requires a credit check, which can have an impact on your credit score. If you have a high credit score, this may not be a concern. However, if your credit score is less than perfect, you may find it more difficult to secure a good deal on a remortgage. You can check your credit score by clicking here.
• Longer term: If you switch to a mortgage with a longer term to lower your monthly payments, you’ll end up paying more interest over the life of the mortgage. This is something to consider if you’re planning to pay off your mortgage early or sell your home in the near future.

Using a mortgage broker for your remortgage

A mortgage broker can help with a remortgage by assisting you in finding the best mortgage product to meet your needs and goals. They can also help you compare rates and terms from different lenders, and help you negotiate more favourable terms.

Here are some specific ways a mortgage broker can assist with a remortgage:

• Assessing your financial situation: A mortgage broker can review your current financial situation, including your credit score, income, debts, and other financial factors, to help determine the best mortgage product for you.
  
  
• Shopping around for rates and terms: A mortgage broker has access to a wide range of mortgage products from different lenders, and can help you compare rates and terms to find the best deal.
  
  
• Negotiating with lenders: A mortgage broker can help negotiate more favourable terms with lenders on your behalf, such as a lower interest rate or lower closing costs.
  
  
• Handling the paperwork: A mortgage broker can help complete and submit the necessary paperwork to secure your new mortgage.
  
  

By working with a mortgage broker, you can potentially save time and money and find a mortgage product that is better for your needs.

It is important to shop around and compare offers from multiple mortgage brokers to ensure you get the best deal.

Remortgaging can be a valuable financial tool for homeowners looking to save money on their monthly mortgage payments, pay off their home faster, or tap into the equity they have built up in their home.

It is important to carefully consider all available options and work with a financial professional or mortgage lender to determine the best course of action.

It is also important to carefully review the terms of any new mortgage agreement to ensure it meets your financial needs and goals.

Overall, remortgaging can be a powerful way to take control of your home financing and make the most of your hard-earned money.

If you are interested in making a remortgage application with us, you will need to schedule an appointment with one of our specialist advisers.

After we have explored the right options for you and your circumstances, your remortgage application can be made either by phone or in person.

Good luck on your remortgage journey, and don’t forget if you need any assistance, our team is here to help. Get in touch with our team. 

BE CAREFUL BEFORE YOU CONSOLIDATE ANY OTHER DEBTS IN YOUR HOME. 

YOUR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE OR ANY OTHER DEBT SECURED ON IT.