What To Look Out for When Re-mortgaging
Re-mortgaging with your existing lender can be easier than you think as new rules introduced in 2014 mean that you should only take out a mortgage you can afford to pay back. In principle, these rules apply to anyone taking out a new mortgage, including those re-mortgaging. In practice, lenders are permitted a degree of flexibility when dealing with existing customers looking to re-mortgage. In short, lenders are permitted to issue new mortgages 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 may be difficult to find a new and better deal, other people are in a much stronger position when they come to re-mortgage. Those that 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 price rises as well. This means that when they come to re-mortgage, their new mortgage may be a small percentage of the value of their home. This is called a smaller loan to value and is basically the same as being able to put down a larger deposit; Borrowers may therefore be eligible for better deals than they were the first time around. At the very least, investing some time looking at what’s available can help when negotiating with an existing lender.
Understanding the pros and cons of remortgaging is the most important thing and the basic golden rule is to add up all the costs and look at the savings on offer; Then you will be able to see which is the higher number. Those who would like someone to help with this process can get professional financial advice from a qualified financial advisor who will be happy to help you get your financial house in order.
Contact Us to find out more about What To Look Out for When Re-mortgaging
If you are looking for further advice and guidance in re-mortgaging, please make sure you get in contact with our team who will be able to help with what you need. Barrett Mortgages doesn’t just offer help and advice for re-mortgaging we also offer this for first-time buyer mortgages, buy to let mortgages, equity release and many more. We were founded by Darren Barrett in 2009, during some of the hardest market conditions the industry has seen. The unparalleled, clear, trustworthy, honest and upfront service offered by Barrett Mortgages has meant our business has thrived during these times when clients have needed more individual and specialist help. If you want to know what our customers think about our service, please make sure you go and check out our Google reviews page.