Remortgage

Buying a property can be the biggest decision made in our lives. It is for this very reason that impartial advice is critical from qualified advisers.


When you remortgage, you are switching your mortgage to another deal, and often, another lender.



Remortgages can be used for various reasons. However, most people simply switch mortgages because it will work out cheaper for them. For example, the introductory discounted interest rate may have finished with your current lender; therefore you could potentially get a new discount rate, or a lower APR, with another lender. Another example is when you may need to re-mortgage to raise funds for home improvements or to consolidate debts.



It is worth noting that sometimes a remortgage is not always the best option. Even if the lender you are considering switching to is offering a lower rate, you must take into consideration the facts that:

  • The new lender may charge you for valuation and solicitors fees, even if you have already paid these on your mortgage with your current lender. However products are usually available where these are paid for by the lender.

  • If you switch mortgage remember to look at the overall repayment period. You may be able to pay less monthly, but check the final repayment date of the mortgage as well.

Also you may be able to switch your mortgage deal with your current lender, avoiding some unnecessary costs. Many lenders will allow you to switch your mortgage deal reasonably easily, although these products are often not as good as their new customer products, or products from other lenders. 

THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME.  YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT. 

Securing short term debts against your home could increase the term over which they are paid and therefore increase the overall amount payable. 

You may have to pay an early repayment charge to your existing lender if you re-mortgage. You can choose how we are paid for mortgages; pay a fee or we can accept commission from the lender, or a combination of fee and commission.