Our friends at Finamply are experts in mortgages and have helped us put together this handy guide.
What is Remortgaging?
Remortgaging refers to the process of switching your current mortgage to a new one. Many individuals opt for remortgaging when their fixed term concludes, allowing them to benefit from improved interest rates or borrow additional funds based on their property's value and the equity built.
Should I remortgage?
Timing is crucial when it comes to remortgaging. Many individuals choose to remortgage approximately six months prior to the expiration of their fixed rate, allowing ample time to secure the best available deal in the market. Remortgaging early also means you could benefit from securing a lower rate, should interest rates rise in the future. If you're considering remortgaging, it is essential to seek advice from a knowledgeable adviser. We highly recommend our sister company, Finamply, whose expert advisers provide tailored guidance based on your unique needs and circumstances.
Refinancing to a better deal:
Interest rates are constantly changing, which means that by timing your remortgage appropriately, you may be able to secure a more favourable rate. However, it's crucial to take into account that remortgaging can involve fees and potential charges, such as arrangement fees or early repayment penalties, which may offset the benefits of a lower interest rate. Before considering remortgaging during a fixed term, it is essential to conduct a thorough evaluation of the overall costs and potential savings.
Unlocking Equity: Exploring Remortgaging Options
Remortgaging offers the opportunity to release equity from your property, providing you with a lump sum of money. This equity release can be utilised for various purposes, including but not limited to gifting a relative a deposit for their home purchase, funding home improvements, or refinancing higher-rate debts held elsewhere to save on monthly expenses.
Benefits of Remortgaging to a Fixed-Rate Mortgage
Remortgaging to a fixed-rate mortgage allows you to secure a predetermined interest rate for a specific duration, shielding yourself from potential future rate increases. However, it's crucial to recognise that interest rates are unpredictable and subject to fluctuations. Seeking guidance from a mortgage adviser is strongly advised, as they can offer personalised advice tailored to your unique financial situation.
Important Considerations for Remortgaging
When contemplating a potential remortgage, it's crucial to take various factors into account. Our trusted partners at Finamply are readily available to provide guidance and answer any queries you may have. It's essential to ensure you can consistently meet your mortgage repayments to mitigate the risk of home repossession.
Please note that remortgaging before the end of your current fixed rate may result in an early repayment charge from your existing lender. Finamply's expert advisers have extensive connections with over 90 lenders. If you're considering remortgaging but need clarity, you can reach out for face-to-face consultations, a Teams call, or schedule a phone appointment.
Your home may be repossessed if you do not keep up repayments on your mortgage.
There may be a fee for mortgage advice. The actual amount you pay will depend upon your circumstances. The fee is up to 1%, but a typical fee is 0.3% of the amount borrowed.
Finamply Mortgages Limited is an appointed representative of Mortgage Advice Bureau Limited and Mortgage Advice Bureau (Derby) Limited which are authorised and regulated by the Financial Conduct Authority. Finamply Mortgages Ltd. Registered Office: 1 The Links, Herne Bay, Kent, CT6 7GQ. Registered in England Number: 10785015