Need to know more about remortgaging your property? This guide explains it all
Want to save money by remortgaging your home? Around a third of all property mortgages in the UK are actually remortgages, but choosing to remortgage is something that takes a lot of planning and careful thought. Fortunately, you have come to the right place for advice and guidance. Here at Jordan & Halstead, we are an experienced letting agent in Cheshire and surrounding region – no one is better-placed to help your navigate the often confusing world of remortgages
Keeping your property costs down
When you finally get your hands on a house to call your own, it can be an incredibly exciting and rewarding experience! But when you agree to a mortgage deal, you always sign up to what is known as an initial rate or ‘introductory period’. For a few years you can enjoy this beneficial rate and begin organising your finances around it – but then the end of this period is in sight, and as a homeowner you are left looking for options to keep your property costs down without losing your privileges as an independent homeowner.
This initial rate will eventually come to an end, leaving you with higher mortgage repayments. This is why many homeowners choose to remortgage their home, as this prevents this from happening. By remortgaging your home, you agree to a new mortgage arrangement with a new lender, allowing you to once again enjoy ‘introductory period’ rates and save money on your home.
Is remortgaging your home a good idea?
Remortgaging comes with a range of different benefits. While it may not be right for everyone, generally speaking yes – remortgaging is a good idea. It can help you to manage and even transform you finances, making savings of hundreds of pounds each month – freeing up money to spend on other things like home development.
There are a range of benefits that come with remortgaging your home. For example, alongside the most obvious example of remortgaging to a more affordable rate than your SVR (standard variable rate), depending on your circumstances remortgaging could allow you to pay off your mortgage more quickly, borrow more money, or save money if your house value has gone up.
When should I plan to remortgage?
Remortgaging is most often an excellent idea for homeowners. However, there are occasions when a remortgage might not be the right thing for you. Timing, for example, plays a big part in finding a new remortgage agreement. You should keep an eye on when your current mortgage agreement is going to come to an end while checking the market for a cheaper deal before it ends.
One thing to bear in mind is that you should make sure not to remortgage your home before your current introductory rate deal ends. Doing so can mean that you are subject to early exit penalties or early repayment charges.
How do I remortgage?
In order to remortgage your home, you’ll need to work with a bank, building society or specialist mortgage lender in order to secure a new arrangement. On top of this, it is highly recommended that you work with an experienced mortgage adviser – such as the team here at Jordan & Halstead – that has access to a range of different lenders and can guide to the solution that best suits your circumstances.
What extra costs are involved?
Remortgaging means finding a new mortgage provider that will pay off the entirety of your existing mortgage. However, there are a range of additional costs that you must keep in mind when it comes to securing a remortgage agreement.
Early repayment charges
Property valuation costs
Mortgage broker fees