In the simplest terms Re-mortgaging means changing your current mortgage deal.

 

There are many reasons you may want to do this! The most common being that your current mortgage deal is coming to an end and you want to save money or you may want to buy a larger home. You can choose to stay with your existing mortgage lender and choose a new deal with them or change to a new lender and get a new mortgage, both are considered a re-mortgage.

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When you can re-mortgage depends on whether you are an eligible candidate, for example you should definitely look into your options if the following apply your fixed rate deal is coming to an end When you decided to take out your mortgage you chose a fixed rate mortgage, this means for a period of time at the start of your mortgage your interest rate was fixed at a lower introductory rate than the lenders standard variable rate (SVR), the fixed rate periods are usually for a duration of 2 years or 5 years however other durations are possible depending on a clients needs.

 

Once this initial period comes to an end you are automatically switched on the lenders standard variable rate which is usually much higher and can fluctuate depending on the Bank of England’s Base rate. To ensure you continue to stay on a lower rate you can re-mortgage to take advantage of a new deal with your current lender or choose to move to an alternative mortgage lender.

It’s a good idea to wait until your fixed rate period is coming to an end before you re-mortgage as there are usually fees to pay if you try to re-mortgage before this...

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Your property value rises considerably

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This could mean you have access to lower mortgage rates if your home rises considerably in value so speak to your advisor if you think this is the case.

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You want to borrow more money

 

If you wish to make home improvements such as an extension or a loft conversion and your current deal is coming to an end it’s a great time to look into your options.

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What is a Product Transfer?

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Simply a product transfer means moving to a new deal with your existing mortgage provider. You may chose to do this when your current deal is due to expire in order to avoid moving onto the lenders standard variable rate (SVR).

Although a product transfer is a lesser known option it is an alternative to re-mortgaging your home. Most product transfers are usually completed in approx. 10 working days and it most cases does not require a new full application such a re-mortgage which means less paperwork.

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Opting for a product transfer can also help to avoid valuation fees and new mortgage lender admin fees. It’s wise to speak to your adviser when your current mortgage deal is due to end so they can make you aware of the mortgage markets current rates and how they compare to your lenders product transfer rate.

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*You may have to pay an early repayment charge to your existing lender if you remortgage.

*Your home may be repossessed if you do not keep up repayments on your mortgage.