Remortgage

Remortgaging is the term used for changing your mortgage. Whether you choose a new lender or opt for a different mortgage with the same lender (known as a product transfer), you will be applying for a new mortgage product.

Timing is crucial when it comes to benefiting from remortgaging. There are circumstances where it’s a good idea, and others where it can be detrimental.

When is a Good Time to Remortgage?

You will likely benefit from remortgaging if any of the following circumstances apply:

Your current fixed rate is ending: If your fixed rate deal is ending, your mortgage repayments will default to the lender’s standard variable rate (SVR), which is often higher than fixed rates. Switching to a new mortgage can be a better option.
You’re concerned about a rise in interest rates: With a variable rate or tracker mortgage, changes to the base rate of interest may impact your monthly repayments. Remortgaging to a fixed mortgage can provide security against future rate increases.
Your home has significantly risen in value: If your home’s value has increased since you took out the mortgage, your loan-to-value ratio will have fallen. This can give you access to better mortgage rates and the opportunity to increase borrowing or fund home improvements.
Your mortgage terms do not allow overpayments: Making overpayments can help reduce the term or monthly payments of your mortgage. Remortgaging to a product with unlimited overpayments can be beneficial if you plan to make significant overpayments.
You want to increase your loan: Remortgaging can be used for purchasing high-value items or funding home improvements. However, consider other financing options alongside remortgaging.
You want a more flexible mortgage: If you need options like payment holidays or the ability to offset savings against interest, remortgaging can provide a more flexible mortgage.

You want to change your mortgage type: If you need to switch from an interest-only to a repayment mortgage or change the property use from residential to Buy-to-Let, remortgaging may be necessary.

Talk to an expert Adviser, now!

Our highly experienced Advisers are ready to help you with either buying or remortgaging a home, protecting your property and lifestyle along with saving you time and effort, ensuring you have a competitive deal right for you.

When is Remortgaging Not a Good Idea?

Remortgaging may not be the right choice if any of the following circumstances apply:

There are high early repayment charges on your existing mortgage: Large exit fees on your current mortgage can outweigh the potential savings from remortgaging.
Your remaining debt is very small: If you have less than £50,000 left to pay on your mortgage, the fees involved in remortgaging may outweigh the savings.
Your financial circumstances have worsened: If your financial situation has deteriorated since taking out your original mortgage, it may be challenging to secure a remortgage.
You have low or negative equity in your property: If your home’s value has decreased, resulting in higher loan-to-value, it may be difficult to obtain a remortgage or secure favorable interest rates.
You already have a great mortgage rate: If you already have one of the best mortgage rates available, the minimal savings from remortgaging may not outweigh the associated fees.

What Happens if You Don’t Remortgage After Your Deal Expires?

You are not obligated to remortgage, but if you choose not to, you will transfer to your lender’s standard variable rate. These rates are generally higher than other mortgage deals, resulting in increased repayments.

Fees Associated with Remortgaging

When you apply to remortgage, you can expect to pay similar fees to those of your original mortgage. Arrangement fees, booking fees, legal fees, and valuation fees may apply. While a deposit is not required for remortgaging, offering one can improve your chances of acceptance.

How Can Multibroker Help as a Mortgage Broker?

Multibroker can provide valuable assistance in remortgaging your home. We can advise you on whether your circumstances are suitable for remortgaging, helping you avoid costly decisions and failed applications. Our expertise allows us to find the most suitable deal for your situation and approach lenders on your behalf. We can guide you on the optimal timing for remortgaging and assist with the application process until completion.

Get in touch with Multibroker today to explore your remortgaging options.

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

Remortgage

When is a Good Time to Remortgage?

Talk to an expert Adviser, now!

When is Remortgaging Not a Good Idea?

What Happens if You Don’t Remortgage After Your Deal Expires?

Fees Associated with Remortgaging

How Can Multibroker Help as a Mortgage Broker?

Talk to an expert Adviser, now!

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