What
is a remortgage?
A remortgage
is the process of paying off one mortgage with the proceeds
from a new mortgage using the same property as security.
How
often should you review your mortgage?
You might have agreed to remain with your current lender
for a minimum period of time; this is often the situation
with Fixed or Capped rate mortgage schemes. In general
we recommend that you review your mortgage finance every
twelve months. If you are currently paying a standard
variable rate it would be wise to review your mortgage
right now!
Why
remortgage:
Remortgage to save money: The number of mortgages available
in the UK is huge so it pays to shop around. By moving
your mortgage to a more competitive lender you could reduce
your monthly repayments.
Remortgage
to raise extra money:
If you are looking to release some of the money tied up
in your home a remortgage can be worth considering. You
may wish to remortgage to raise funds to improve or extend
your home. Remortgage to pay off your loan earlier: By
restructuring your mortgage over a shorter period of time,
you are likely to pay less interest to your lender.
Is
remortgaging costly?
As with most mortgage application there are fees involved.
It is usual to pay a Solicitor and you might be expected
to pay for the valuation of your property. Lenders may
also charge you various fees specific to the mortgage
scheme. The new lender may agree to pay some or all of
the costs involved.
Some
of the costs might include:
Valuation
charge
Legal fees
Arrangement fee (to lender)
Early repayment charge or other penalty from your original
lender.
How easy is it to remortgage?
Its very easy, firstly you should speak to your current
lender to establish how much you owe on your mortgage
and if any penalty would be charged if you change lender.
The next step is to speak with your mortgage broker who
will compare the schemes being offered by your existing
lender to those available in the whole of the mortgage
market.
Budget
Planning:
Before applying for a mortgage or remortgage it's important
that you understand what your existing commitments are
and how much you can afford in repayments for your mortgage.
Your
Smaart Associates Adviser will help you establish a budget
for your new mortgage but to get started please try using
our online budget planner.
Are
you ready to speak with an advisor?...call us on 020
8886 4999
