Why should I remortgage? 

There are several reasons why people choose to remortgage their homes. It could be to cut costs by moving to a better lender, to raise cash by releasing money from the property, or to change to a better rate to help pay off the mortgage sooner. Whatever the reason, remortgaging your property can be a sensible idea. 

Typically there are two ways to remortgage your property; you can change the product you have with your current lender, perhaps switch from a fixed rate to a variable one, or you can change your lender and move onto a new agreement. To do this, you will need a maximum Loan-to-Value ratio of 90%, meaning you will need enough equity or a 10% deposit. 

Think carefully before securing your debts against your home. Your home may be repossessed if you do not keep up repayments on your mortgage.

Getting ready to remortgage

Remortgaging a property is far simpler than buying one; there is no property to find but there may be fees to pay.. That said, you should do some research to ensure that it’s worth your while and that you get a good deal on your remortgage agreement. 

If you want to switch to a variable rate to take advantage of current market conditions, a Mortgage Broker will determine if it’s best to stay with your current lender or move to one that’s more profitable. On the other hand, if you’ve seen a better deal with another lender, a Mortgage Broker will help you assess its true value. 

What remortgage should you choose?

You have several options available to consider when thinking about remortgaging. In general, the remortgage arrangement you choose will be determined by your present financial circumstances, along with your reasons for remortgaging. Do you want to take advantage of favourable market conditions or free up cash to add value to your home or pay off debts? 

Choosing the best remortgage agreement is mostly about assessing your circumstances and deciding if you want to change the product or the lender. Sometimes both. Changing the product can free up cash allowing you to reinvest it in the mortgage while changing your lender can allow you to find a better rate overall. 

Think carefully before securing your debts against your home. Your home may be repossessed if you do not keep up repayments on your mortgage. 

What fees are involved? 

Although remortgaging your property is significantly cheaper than buying your first home, there are still fees to pay that you might not realise. When calculating your remortgage arrangement costs, you need to consider Arrangement Fees, Booking Fees, Valuation Fees, and Legal Fees. 

A new provider will charge an arrangement fee for setting up the mortgage; booking fees are sometimes charged on top of the Arrangement Fees and tend to be a one-off payment of £100 or £200. You will pay legal fees if you need to hire a solicitor, and possibly a valuation fee. There may also be an early repayment fee from your previous lender of between 1-5%. 

How do I get the most suitable remortgage deal?

It’s worth taking some time when considering a remortgage deal to ensure you find the more suitable deals around. Contact a whole of market Mortgage Broker who can assess your circumstances and motivations. A whole of market Mortgage Broker has access to mortgage providers across the country and can find a deal that’s tailor-made for you. 

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