Remortgaging, in simple terms is when you take out a new mortgage product on your existing property, either with your current lender or with a new lender.
There are many reasons to consider remortgaging, whether you;
- Have a current deal that’s coming to an end and don’t want to be transferred to your lenders Standard Variable Rate.
- Want to buy another property whilst keeping your current one.
- Want to do some significant home improvements.
- Want to lower your repayments.
Whatever the reason, remortgaging tends to be a straightforward process as there carries less risk to the lender. You’re likely to have a good range of lenders open to you that are happy to take customers on who are remortgaging.
However, whilst it may be a good option for some, there are instances when remortgaging is not a good idea. For example:
- If you’d have a large early exit repayment charge.
- You have very little mortgage left to pay i.e. under £50,000.
- You have little/no equity built up in the property as it’s a recent purchase.
- You have new financial problems which could put your application at risk.
- The value of your property has dropped.
If you’re looking to remortgage there are a lot of things to consider. Not only are you looking for the best mortgage rates, you need to consider the overall cost of the mortgage over the duration of its term and any associated charges (i.e valuation or legal fees).
At the Online Mortgage Guru we know that helpful and insightful advice is useful when looking for the best remortgage options and deals.
There are a number of products and rates to choose from so it’s always worth talking to a specialist advisor who can help you understand what may work best for you based on your circumstances.