You could save money by remortgaging!
Remortgaging need not be a hassle. In fact, it’s something we should all think of regularly to make sure you are still on the best mortgage deal that suits you. Unlike basic comparison sites, your advisor will tailor your remortgage to fit your own personal circumstances. Why not let Street Mortgage Solutions Ltd do the hard work for you to make sure you have the very best mortgage that suits you. We’re on your side and want to make sure we find the right mortgage for you.
What is remortgaging?
If you are looking to save money on your existing mortgage or to raise some additional money against your property, remortgaging your home could be the perfect option. It can often be cheaper to add an extension to your existing property rather than moving home, and a remortgage deal could give you extra cash to finance this.
Why consider remortgaging?
As an experienced property owner you will no doubt understand that small differences in rate can have a big impact on your repayments. You will want to make sure you get the very best remortgage advice possible, ensuring you get impartial mortgage advice when looking for that next deal. Remortgaging is simply replacing your current mortgage with a new one. You may not even have to move lender to do it, although you certainly shouldn’t be afraid to move if doing so makes financial sense. For example, your current mortgage deal period is coming to an end and you want to find a better rate or more suitable product, or you might remortgage to raise additional capital to fund home improvements or to consolidate debt.
One of the main reasons to consider remortgaging is to make sure that you are always getting the best mortgage deal possible for your circumstances. For example, if you have had the same mortgage for several years and have paid off some of the money owed, this means that you will now own a greater proportion of your property and may therefore be able to get a better rate of interest by remortgaging to a deal with a lower loan-to-value ratio (LTV).
It is important to start shopping around for a new offer around 3 months before you get transferred onto your lender’s standard variable rate (SVR). In most cases the lender’s SVR will be higher than your current deal rate.
If you are currently on a special mortgage deal, it may still be possible to make a saving if you can find a sufficiently attractive alternative to switch to. It’s just that you need to add an extra element to your calculation. This is the effect of penalty charges on your current mortgage. Most deal rates will require you to pay an early repayment exit fee if you remortgage before the term of the product has come to an end. Typically, the penalty will be several months’ worth of interest. The fee may vary depending on your outstanding mortgage balance and how far from the end of the term you are.
Is it always worth remortgaging?
Remortgaging can be a great way to save money for some homeowners, but it may not be the right choice for everyone. For one thing, there will be certain costs involved such as survey and administration fees – particularly if you are moving to a new mortgage provider – which needs to be taken into consideration and balanced against the overall saving that you will make once you remortgage. Some of the factors that can affect whether remortgaging is financially beneficial for you could include:
- The size of your mortgage – if you only have a small outstanding mortgage amount left to pay off, the amount you save may not be enough to make the process and cost of remortgaging worth your time.
- The remaining term of your mortgage – If you want to remortgage and leave a mortgage deal that is still ongoing – for example, you want to leave a five year fixed rate deal after three years – then you are quite likely to be liable for an early repayment exit fee. You will need to weigh up the cost of this against the potential savings you will make by remortgaging at that particular point in time, as opposed to waiting for your current mortgage deal to end and then making the switch.
- Your employment status – If since you took out your original mortgage your employment situation has changed, particularly for you or your partner (if they are on the mortgage), then depending on how long ago that was, this may have a bearing on what type of remortgage deal you can get.
- Credit status – Lenders when considering whether they will lend to you will look at your credit score. If your credit situation has changed since you took out your initial mortgage this may be a factor in whether you can remortgage. If your credit score has deteriorated due to a bad debt or missed mortgage payment then you may find remortgaging is not in your interests. See our bad credit remortgage service for more details.
Choosing to remortgage your house
Remortgaging is a major financial decision with various benefits and potential drawbacks attached, which means that getting the best remortgage advice should be a really important consideration.
THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.
Why Choose Street Mortgage Solutions Ltd to Remortgage?
Our approach is to help you make the right decision
Whatever your remortgage requirements, we look after you from enquiry to completion.
The mortgage market is ever changing and having an expert on hand to give you information and guidance remains vital for you to reach an informed decision. Whatever your experience, our specialist mortgage advisers are independent and we are confident you will know that by using our remortgage service and speaking to our specialist mortgage advisers, you have made the right choice.
Challenges in the mortgage market
Recent changes to mortgage regulations have had a significant impact on how people can find and apply for the right mortgage.
The one change that has had the greatest impact is the need to ensure that when selecting your mortgage lender, your circumstances meet their criteria and that you provide all of the necessary information about your circumstances right at the start; otherwise, your application might be delayed, or even rejected out of hand. This means that getting good advice from the outset is more important than ever before, not just to make sure that you make it through the first stage, but every stage thereafter to ensure you have a smooth path to completion.
5 reasons to use Street Mortgage Solutions Ltd
- Specialist and independent mortgage advice – We provide a personal and professional independent mortgage advice service which does not stop simply because your mortgage application has been completed. Understanding everything that you should consider in the advice process is critical and our mortgage and protection specialists bring years of knowledge and experience to help. Our advisers are fully qualified.
- Access to a wide range of mortgage products from a wide range of lenders – As an independent mortgage adviser centre, we have access to a wide range of mortgage deals from UK lenders. Our systems utilise the latest research software to help you get the best deal for your circumstances.
- Access to additional services, carefully selected to suit your needs – Including valuations, conveyancing, general insurance and more, we can take the hassle out of making sure you get access to quality and affordable products and services. This means getting things done in a timely and efficient manner. This inevitably means higher service standards.
- Contacting you at a time that suits you via your requested method – We all lead busy lives, so making sure you are contacted quickly and in a way that is easiest for you plays an important role. We offer a combination of telephone, email, post and texts, delivered according to your needs so that your mortgage is always the top priority, aiming to bring a smooth and successful outcome in all aspects of our mortgage service.
- In safe hands, each step of the way – At Street Mortgage Solutions Ltd we know how important each step of the mortgage process is. Knowing who to contact and what to ask can make all the difference in making sure we deliver a smooth and successful mortgage service. One you will want to come back to again and again. This is why you will not only speak to the same adviser throughout the mortgage process, but you will also have a dedicated experienced administrator.
What is the Loan-To-Value ratio (LTV)?
The loan to value ratio of a mortgage indicates how much of your property you own outright (covered by your deposit, commonly known as equity) and the amount you are borrowing (covered by your mortgage).
Generally speaking, the higher the deposit you are able to put down (and thus the greater the proportion of the property you can purchase outright at the outset), the better the mortgage deal you are likely to get, and the greater your choice of deals is likely to be.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE
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