Remortgaging

Remortgaging means switching your mortgage to another deal sometimes with another lender, without moving property.

It is important to review existing mortgage arrangements on a regular basis to ensure that they continue to be efficient and appropriate to your unique demands and needs. With changes to the markets with regards to available products or interest rates, it could become necessary to consider a remortgage.

There are many reasons why you may wish to remortgage your property. Typically, the best mortgage deals only last for a short period, often only two to five years, and thereafter it becomes necessary to find the best deal available to suit one's unique demands and needs. Often borrowers choose to remortgage in order to take advantage of the new lower rates on offer and thereby pay less on a monthly basis. In some situations, the value of the property may have increased to such an extent that it affects the loan-to-value and therefore one would be able to find a new mortgage at a much lower interest rate. Sometimes it is not about saving money, it could be to raise additional capital for a new project, or you want to make extra payments to decrease the term of your loan but your current deal will not allow this.

Alternatively, one may be looking to consolidate debt. Think carefully before securing other debts against your home.

It is also possible, that all these reasons apply.

Whatever the reason, we at Windom Finance will assess your personal situation and help you find what best fits your circumstances. Remember that there are many possible pitfalls and small print when remortgaging a property and therefore it is always a good idea to get professional guidance from one of our brokers.

If you are looking at switching mortgages, look at the overall repayment period too. Your monthly cost may be less, but don't forget to check the final repayment date of your mortgage as it may be longer than your current deal.

A mortgage is a loan secured against your home. Your home may be repossessed if you do not keep up repayments on your mortgage or any other debt secured on it.

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