Remortgaging happens when you change the mortgage you currently have on your property, either by switching mortgage lenders to a new lender, or by changing your current mortgage deal with your existing lender.
The main reasons people remortgage are to save money by getting a lower rate or to release equity from their property to pay for things such as home improvements, or to pay off other debts.
When you take out a new mortgage, you normally get an introductory deal for the first few years of your mortgage. Introductory mortgage deals normally last for between two and five years. Once the deal ends you’ll probably be moved onto your lender’s standard variable rate, which will usually be higher than other rates that you might be able to get elsewhere.
You don’t have to settle for the standard variable rate or stick with the same lender for your whole mortgage term. Provided you aren’t locked into a deal which will charge you early repayment penalties if you change, you should be free to switch to another mortgage deal whenever you want.
A Falbros remortgage broker will be able to compare leading mortgage interest rates demonstrating how much money you can save by getting a better interest rate, this can often save you thousands of pounds a year.
If you have a lot of debt, you might be tempted to borrow some extra money from your existing lender and use it to pay off your other debts. Mortgage rates are typically lower than personal loans or credit cards and borrowing money against your property can be more cost effective. Additional borrowing can also help with home improvements or the purchase of another property. Please be aware that debt consolidation may increase the amount to be repaid over the long term.
In order to remortgage your property you will have to show evidence of your income, such as payslips and bank statements and your outgoings, including other debt repayments, household bills and living costs such as travel, clothing, entertainment and childcare.
Remortgages may also need a re-valuation of your property but by consulting a mortgage broker before remortgaging they will be able to help you work through the process identifying whether you are better off staying with your existing mortgage, or moving elsewhere.
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Our mortgage brokers offer mortgage advice on a wide variety of mortgages, more detailed information about the different mortgages can be found below.