Re-Mortgaging

Date Published 01 May 2018

Would you like a better deal on your existing mortgage or to borrow money against your property? Re-mortgaging may be for you. Moving lenders can get you a better deal but before leaving your existing lender you should challenge your current lender to give you a new offer. You may have to pay an exit fee to leave your current lender & dependent on your deal you may have to pay an early repayment charge.

Reasons to re-mortgage –
• Your mortgage doesn`t fit you anymore – You may have a new job with a higher salary or have received some extra money and you`d like to make extra payments, but your existing mortgage won`t allow it.
• A payment holiday – some mortgage providers allow you to take a payment holiday which could be handy in certain situations.
• Whatever flexibility you`re after in a mortgage, its out there.
• You may want to borrow more & your current lender has refused it. Re-mortgaging to a new lender may allow you to raise money cheaply on new rates but you should watch out for extra fees which may result in you not getting such a great deal.

People who shouldn`t re-mortgage –
• People with a great deal already. Don`t swap unless its for something better.
• People who are locked into their current deal with penalties for leaving.
• People who own 10% or less of their property.
• People whose equity has shrunk.
• People whose circumstances have changed since.
• People with bad credit.
• People with a small mortgage.

If you`re ready to re-mortgage there`s a few things to consider –
• Will you be paying an early repayment charge?
• Will you be paying a deeds release fee?
• How much do you owe your current lender?
• How much will they lend you?
• How`s your credit score looking?
• How much equity do I need in my house?
• Do you have enough equity in your house?
• What type of mortgage do you want? Repayment or interest-only?
• Do you want your mortgage to be flexible?
• Can you afford the repayments?

We`ve posted about boosting your mortgage chances so check out that post to find out more. This should have answered some questions about re-mortgaging and hopefully you`ll know which direction to go in!