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You need to make sure that remortgaging is the right option for you. Missing mortgage monthly payments could end up in your home being repossessed. You might want to remortgage as your deal is coming to an end or maybe you want to switch onto a better deal all together. No matter your reasons – CD Financial can help find the right option for you and offer tailored mortgage advice.
Remortgaging – Some questions that you might have
What is remortgaging?
Remortgaging is obtaining a new mortgage when you already have a current mortgage. There are a number of reasons why you might be remortgaging and there is a decision to make whether you want to remortgage with your current lender or a new one.
It can be hard to decide which is the right option for you which is where CD Financial can offer their financial services and expert mortgage advice to find the right remortgage deal for you based upon your current situation.
When is it a good time to remortgage?
The right time to remortgage is going to be based upon your own circumstances, for instance for current finances and the reasons behind your decision.
There are a few common reasons why people tend to remortgage for instance:
- Your current deal is about to end
- You want a better rate
- Your home’s value has gone up…a lot
- You’re worried about interest rates going up
- You want to overpay and your lender won’t let you
- You want to switch from interest-only to repayment mortgage to pay off your mortgage
- You want to borrow more
- You want a more flexible mortgage
- Home Improvements
- Debt Consolidation
When is remortgaging not a good idea?
There are a few reasons why it might be best to hold back when it comes to remortgaging. For instance:
- Your mortgage debt is really small
- Your early repayment charge is large
- Your circumstances have changed
- Your home’s value has dropped
- You have very little equity
- You’ve had credit problems since taking out your last mortgage
- You’re already on a great fixed-rate mortgage
What happens if I don’t remortgage after my deal expires?
If you do not remortgage it is likely that your lender will just put you onto their Standard Variable Rate which tends to be a more expensive option. Mortgages are big commitments and it is important to be thinking about your remortgage options ahead of your mortgage term coming to an end.
What remortgage options are available?
Ultimately you will need to decide whether you want to continue borrowing from your current lender or switch to another one. There are a number of different things to consider when making your decision.
Remortgaging with your existing lender
It can be advantageous to remortgage with your existing mortgage lender if you have a good borrowing history with them and they are offering you good deals to continue loaning from them. It can mean that you are avoiding fees which can occur if you were to approach a new lender. Some lenders will even skip the affordability check and just offer you a new mortgage deal making it a quick process to remortgage, this is called product switching.
If your income has decreased or your employment status has changed then sometimes it can be better to switch onto a new lender. It would be worth seeking the help of a mortgage broker from CD Financial to discuss your options and which one is going to be the right one for you.
Remortgaging with a different lender
Sometimes there are better mortgage rates and deals being offered elsewhere and it can be the right option to find a new deal with a new lender entirely. The more equity that you have built up in your current property the better too. Many lenders will offer competitive fixed rates and variable rates in order to entice you to lend with them or offer free valuations. It can be a good pay to exit your current mortgage too.
What fees are associated with a remortgage?
If you are leaving your current lender you might have to pay exit fees and repayment charges in order to leave the deal. There are arrangement fees, valuation fees and booking fees similar to your first mortgage application. It is important to keep in mind the costs around remortgaging when deciding which is going to be the right option for you. You will need to pay the legal fees involved whether this be a solicitor or a conveyancer to sort out all the legalities surrounding your mortgage. There are mortgage deals that offer no fee options but these are harder to find.
How can CD Financial Mortgage Brokers help me if I need to remortgage?
Here at CD Financial we are authorised and regulated by the Financial Conduct Authority meaning we are qualified to give you the mortgage advice that you are seeking. We can offer guidance to the right lender for you based on your current circumstances.
We have access to the independent mortgage market meaning we can offer a range of competitive lending options and different kinds of mortgages whilst helping you to get your mortgage application together before approaching the lender.