There is not a specific definition to sum up a remortgage. It could be that you want a better interest rate on your mortgage, you might want to borrow additional money on your current home or maybe change the names party to your mortgage. Whatever your circumstances, let Salcey Mortgages talk through the various options which could be available to you.
The most common reason someone may remortgage is to obtain a better interest rate or product. Most mortgages have an initial rate you pay which ends after a period of time. This is often 2 or 5 years however it does vary and it is wise to check on your latest mortgage statement or with your mortgage provider. When such initial periods end, you will often go on to a higher rate with your lender known as a Standard Variable Rate (SVR) and if not reviewed it may be that you are paying considerably more interest on your mortgage costing a lot of money. Being whole of market, Salcey Mortgages can search 1000’s of mortgage products to find you the very best deal to fit you needs. With increasing competition in the mortgage marketplace, most lenders offer incentives to switch your mortgage to them resulting in many instances of fee free switching. ‘Remortgaging’ like this is one of the more easier and quicker transactions you can do on your mortgage and can be very lucrative in doing so.
Another reason to remortgage may be that you want to raise funds on your current mortgage in order to complete some home improvements, fund a wedding or to clear existing debt for example. You may not even have a mortgage on your property and want to raise some money to do the above. Let Salcey Mortgages talk you through the options available to you. Certain limitations apply.
We can also help you and give advice in respect to your mortgage if you need to amend the parties to it. This is known as a transfer of equity. There are many reasons why someone might want to change the name on a mortgage such as relationship breakdown or divorce to maybe removing a family member who has helped get a mortgage in the first instance.
We will do our best to make you aware of the options available and can also recommend solicitors if you need legal advice.
You may have to pay an early repayment charge to your existing lender if you remortgage.
Think carefully before securing other debts against your home.