This year there has been an increase in homeowners choosing to remortgage, up by 6% in March compared to the same period last year. Buy to let remortgaging was also up.*
If you are looking at ways to could reduce your monthly outgoings, raise some money or to pay off some debts switching to a lower rate mortgage could enable you to do this.
So what is a remortgage?
This is when you replace your current mortgage with another from a different lender.
The reasons why people choose to change mortgage is predominantly to save money. Other reasons include changing to a fixed deal so that it’s easier to budget, to raise extra money for repair work to their home or to consolidate debts or loans.
Is your mortgage due to expire?
If you’ve signed up to a fix rate, tracker or discount mortgage it will normally be for a fixed term, when this ends most lenders will just transfer their homeowners over to a standard variable rate tariff, which could behigher than the best deals on offer. To avoid this start looking around for another mortgage around 14 weeks before your current loan is due to end.
You might be able to remortgage if the value of your home has increased
If the value of your property has gone up you might be eligible to go in a lower loan to rate band, which could also save you money if you change.
Do you want to borrow more?
If your current lender has refused to lend you more money then you might be able to access more by changing to a different lender, however make sure you take into account any costs of transferring your current mortgage.
If you want to see how much you can save then try out Embrace Mortgage Servicescalculator https://www.embracemortgageservices.co.uk/remortgage-guide
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 OTHER DEBT SECURED AGAINST IT.
Securing short term debts against your home could increase the term over which they are paid and therefore increase the overall amount payable.
Embrace Mortgage Services initial mortgage consultation is free. They will charge a fee of between £399 and £699 upon mortgage application. Depending on the amount of research and administration required.
Intercounty is a trading name of ICIEA Limited and is an introducer appointed representative of First Complete Ltd for purpose of the provision of advice in relation to mortgage and non investment insurance products. Mortgage and Protection advice is provided by LSLi Ltd t/a Embrace Mortgage Services, an appointed representative of First Complete Ltd. First Complete Ltd is authorised and regulated by the Financial Conduct Authority. The Financial Conduct Authority does not regulate some forms of Buy to Let.