Re-Mortgaging - What to consider
If you’re due to re-mortgage anytime in the next six months you may have a few questions on what you will need to consider or prepare for this to go ahead as smoothly as possible. We’ve covered how a Mortgage Adviser can support you through this process in some of our previous blogs and the key stages. Below we have listed some of the key considerations and information to support you ahead of your re-mortgage.
When is the right time?
We’d recommend you start the re-mortgage process six months before your current rate is due to expire. Apart from you feeling very organised and on the ball, the main benefit of this is to ensure we can secure the best rate as soon as possible. If the rates were to rise once your rate had been secured you would not be affected by this. However if the rates were to drop, we could still apply for the cheaper rate putting you in the best position.
Which lender is best?
Whilst it may feel easier to stick with your current lender, this doesn’t necessarily mean you would be getting the most competitive rate. We can explore over 50 lenders for you meaning you can get the right deal and not be swamped in a sea of paperwork! Using a Mortgage Adviser can save you money on this re-mortgage and all future re-mortgages that we do for you.
Is the lowest rate what I want?
Surprisingly finding the lowest rate is not always the most cost-effective option. We will take into consideration lender’s product fees, cash back incentives and even solicitor costs, so you can see the total costs over the term and find the right solution for you. When comparing products yourself without the support of a Mortgage Adviser, this can become difficult and time consuming contacting multiple lenders and working out which is best for your circumstances.
What about my future plans?
Life happens – we get it! And we want to make sure your mortgage term takes into consideration what is coming next for you. Job promotion, starting a family or even planning for retirement could mean you need to adjust your current mortgage term. A Mortgage Adviser will work through this with you and plan your financial future with you.
How to repay my Help to Buy equity loan?
If you’ve taken advantage of the Help to Buy scheme you’ll need to factor in how you plan to repay your equity loan. When re-mortgaging this is a great time to look at your affordability and explore your options. You may want to repay the equity loan in stages rather than in one go or potentially defer the payment.
Changing the parties on a mortgage
If you need to add or remove a party to your mortgage this can be looked at when re-mortgaging to avoid paying an early repayment charges to your lender. This would require additional work from your solicitor, so as mentioned earlier the sooner you start the process the better!
Additional borrowing
Sometimes, due to your personal circumstances, you may need to explore borrowing additional money. A Mortgage Adviser can explore the pro’s and con’s of borrowing more as a secured debt as opposed to an unsecured loan, for example. Additional borrowing can be taken out alongside the re-mortgage or at another time if that’s more suitable.
Are there any risks with my re-mortgage?
You may have to pay an early repayment charge (ERC) to your existing lender if you re-mortgage before your current deal expires.
Contact us today to discuss about your re-mortgage where our experts can advise you on costs, best deals and and check for any possible ERC’s.