Mortgage Deal Coming to an End?
If your current rate is due to end or you are paying your lender’s standard variable rate (SVR), there is a strong chance that you can save money by remortgaging.
It is easy to think that remortgaging is a lengthy and confusing task, but that couldn’t be further from the truth. A remortgage is quite simply moving your mortgage from one lender to another. It can be done to obtain a better deal or raise additional funds for things such as home improvements, a new car or even school fees.
Reasons to Remortgage
In an ever changing market, it is unlikely that your current lender can provide you with the lowest possible rate. As with most outgoings, it pays to review your mortgage regularly and consider moving to the bank or building society with the most attractive products.
Not only can a good remortgage deal mean you pay less interest over your term, it can free up some more disposable income, allowing you to pay off debts, live more comfortably or even consider new investments, such as a buy to let home.
If you are looking at moving into the buy to let market, remortgaging can also be used to free equity from your own home in order to put it towards your new purchase. People who have seen their house value rise significantly in the past few years have found this a particularly appealing option.
Finding a Good Remortgage Deal
There are a myriad of remortgage deals on the market, each with their own features and benefits. At The Contractor Mortgage Company, we make it our goal to find the right deals for your individual circumstances and can tailor a solution that will put a smile on your face.
- The Contractor Mortgage Company can assist you by assessing whether remortgaging makes sense for you and your family.
- We are market brokers, meaning we have access to over 11,000 mortgages and 90+ lenders.
- As interest rates are at historically low rates, it is easy to think that your lender’s SVR is a great deal, but some financial institutions have actually increased their SVR in recent years and the rate you are paying now may not be as competitive as you think.
- Now could be the time to get a great fixed rate that will protect you against future rises or select a fantastic product that enables you to pay back your mortgage early with unlimited overpayments.
Whatever your hopes and requirements, The Contractor Mortgage Company’s experience and know-how can help you find the perfect mortgage.
Is Remortgaging Right for You
Whether remortgaging is the right option for you at this stage will depend on your personal situation. It's important you consider the following:
There are costs involved with leaving you current lender including an exit fee and possibly an early repayment charge (normally a percentage of your mortgage balance) if you are currently in a fixed rate deal and want to leave before the end.
Your new lender will also require a valuation and set up fee.
Changes to the way people are assessed for mortgages and any personal changes to your work or finances will affect whether you are accepted by a new lender.
- If you choose to release equity from your property, this will increase the amount you are borrowing and in turn your monthly mortgage payments.
- When considering releasing money to pay for a project or consolidate debt - do your sums carefully! Although your mortgage may have a lower interest rate than a credit card or loan, it is borrowed over a longer period of time so may cost more in the long term.