Re-Mortgages

 

In today's competitive market, many borrowers choose to switch their mortgage every few years in order to take advantage of the new rates on offer. Those that remain on the same deal for the full term of their loan could lose out on a range of potential benefits, not least the opportunity to reduce the total amount paid back, which could be a significant margin in some cases.

 

In simple terms, remortgaging involves switching your current mortgage to a new deal, arranged either with your existing lender or with a new lender. As a current homeowner you may want to consider taking this step for a number of reasons, such as:

Remortgaging is much simpler than buying a new home because the deeds of the property are already registered in your name. If you choose to change to a different deal with your existing lender, the process is even simpler.

 

And if you do choose to switch to a new lender, only a few steps are involved. If you choose to remortgage with Plus 4 Financial Services, even these few steps involve minimal hassle, since we help manage the process by liaising with lenders, valuers and solicitors on your behalf.

 

The lender will require a valuation to ensure the value of your property is sufficient for them to lend on.

 

You'll be required to make an application to the lender in the same way as when buying a property. The application has to be underwritten by the lender, who will require evidence that the loan to date has been maintained. They'll then issue you with an offer.

 

Conveyancing work will also need to be carried out, and you will need to instruct a solicitor. During the conveyancing process, local searches will be conducted and a report and title will be sent to the new lender.Finally, the solicitor will ensure your previous lender is repaid when the new lender releases the new mortgage funds. If you're borrowing additional funds, the solicitor will release these to you on, or shortly after, completion

 

To save money

 

If you're paying your lender's Standard Variable Rate (SVR), it's likely that your existing lender will offer a better rate and greater flexibility on other available products. This could allow you to save money on your monthly repayments, or to repay your mortgage sooner. And if your current lender doesn't offer better rates or greater flexibility on its other products, you may want to consider switching your mortgage to another lender, even if doing so would trigger early repayment charges payable to your existing lender, as this could still mean a net saving to you.

 

To raise money

 

Higher income or a rise in your property's value means you could increase your mortgage to help pay for major outgoings such as a wedding or your child's university costs, rather than borrowing separately, and in some cases more expensively, for the outgoing itself.

 

To avoid moving home

 

It can be cheaper and more convenient to adapt or add an extension to your existing home, paid for by remortgaging or a further advance, than to move home.

 

To consolidate your debts

 

Remortgaging can allow you to release some of the equity you hold in your home and consolidate other debts, such as a car loan or credit cards, which can attract higher rates of interest than that of your mortgage.