While most homeowners have a mortgage, many don’t realise that they could save money by remortgaging.
Some mortgage interest rates have fallen below 1% in recent weeks and new mortgage products and deals are at some of the lowest rates we have ever seen.
Martin Lewis from Money Saving Expert is urging every homeowner with a mortgage to check their rates to ensure they are on the best mortgage deal possible. This particularly applies to individuals on Standard Variable Rate (SVR). Experian estimates that almost half of homeowners are paying too much for their mortgage by being on SVR.
As an existing client of Key Solutions, we are here to look after you for the lifetime of your needs. If you are on a fixed rate we will proactively get in touch with you between 4 and 6 months before the end date to ensure that we complete your remortgage on your behalf. If you have not spoken with us and are on a variable or tracker mortgage please do reach out as we are here to help ensure you have the best mortgage deal for your circumstances.
So, what actually is remortgaging?
This is when you move from one mortgage product or deal to a different one without selling your home, either with the same or a different lender.
Why would I remortgage?
The main reason people remortgage is to save money on their monthly mortgage repayments by securing a new deal, often with a lower interest rate.
However, a remortgage can also be used to raise additional funds secured against your property as a very cost-effective form of borrowing. Typical uses of the additional funds released from a remortgage include:
• Making improvements to your home
• Paying off loans and credit cards
• Financing a large one-off purchase such as a wedding or new car
• Raising a deposit to purchase an additional property
Many individuals choose to stick with their same lender when it’s time to pick a new mortgage product but this is often not the best thing.
Current house prices have risen by 9.5% in the last year and a further 1.3% since May according to Halifax. If your property has benefited from an increase in value and therefore increased equity (the difference between your mortgage loan amount and the value of your property) your Loan to Value (LTV) percentage could be lower than you think.
The lower your LTV the better interest rates you can get with a lender, therefore you could potentially make significant savings by changing product or lender by remortgaging.
Are there things that might mean I can’t remortgage right now?
Circumstances are going to differ from person to person, and it is always important to discuss things with us as there are some general things to consider before remortgaging:
If your current lender has locked you in with substantial early repayment charges or exit fees, these may outweigh the savings made when remortgaging – we can consider all of this with you
Your financial circumstances may have changed during the period since you took out your original mortgage and you may no longer be able to obtain the level of borrowing you require.
There may be additional fees and charges that you will need to pay in relation to arranging a remortgage.
Your current mortgage might have additional benefits that you need to consider such as the ability to make flexible payments or take payment holidays.
So, how do I arrange a re-mortgage?
Just give us a call or pop us an email at email@example.com
As a whole of market mortgage broker it means we have access to every mortgage product on the market available through a broker and access to exclusive products and rates to help obtain you the very best mortgage for your circumstances.
Don’t worry about changing over to a new lender either, we’re here to make life easier and better for everyone so will do all the hard work for you.
We would love to hear from you if you need us!