How to Re-mortgage Your Home

PUBLISHED: 25 January 2022
DISCLAIMER: The information in this blog post may be outdated and may not reflect current financial practices or market conditions

Wanting to re-mortgage your home? We can ensure that you get the best deal possible, our advisors will look at a number of lenders from across the market to compare products. We will check to see how much you can re-mortgage for, and assist with the process from enquiry to completion, by dealing with the solicitors, surveyors and any other 3rd party to ensure the transaction is smooth and hassle-free. According to a survey done by Ipsos Mori for Panorama, 31% of people who rent or have a mortgage find that payments take up more than a third of their total household income. Even if your mortgage payments are below this level, if they are a significant part of your budget then getting the best possible deal could be a significant boost to the family finance and ultimately your personal wealth.

Like many other businesses mortgage lenders need to be on the lookout for new customers. To attract them, lenders may offer very attractive rates for a limited period. These are often called introductory rates. In the UK these generally last about two to five years. After the introductory rate period ends, your mortgage will continue on the lender’s standard variable rate (SVR). At this time, you will have to choose between staying on the SVR, re-mortgaging with your existing lender or re-mortgaging with a new lender. All of these choices have the potential to be the best deal you can get so it’s worth exploring every option you have. Staying on the SVR can still be a great option to have as when you re-mortgage there are costs involved; This is because you are essentially taking out a new mortgage, you will be looking at paying the same sort of fees as you did when you first brought your home.

How to Re-mortgage Your Home

Re-mortgaging with your existing lender could help you get a better deal while not having to do any complicated paperwork as the lender should be able to keep the transfer as simple as possible. Lenders are permitted to issue a new mortgage to existing customers who technically wouldn’t be accepted under the new rules, provided that the customers are simply changing to a better deal. Re-mortgaging with a new lender while the new mortgage rules may mean that some people struggle to find a new and better deal, other people are in a much stronger position when they come to re-mortgage. Those who have been paying off their mortgage over the last two to five years may have built up equity in their home and may have benefited from prices rising as well. This means that you could get a better loan to value and will most likely enable you to be eligible for better deals than they were able to get the first time around.

When you are looking to re-mortgage, it is important to understand the pros and cons of it. The golden rule is to add up all the costs involved and then look at the savings on offer, then you can see if you are actually saving anything at all and go with the best deal that you find. If you want help with this process our team are more than happy to help you and get your finances in order. So why not get in contact with us and we will be able to find you a great mortgage and help you with a more affordable solution.