Remortgage Advice
A remortgage is when you switch your existing mortgage deal, either by moving to a new lender, or by renegotiating with your existing lender.
A remortgage can be a sensible option under various circumstances. Perhaps your existing mortgage deal is coming to an end. This means that your monthly payment will now revert to your lender’s standard variable rate (SVR), which may be higher than other mortgages that are available. Reducing your interest rate by  just 2% could cut hundreds of pounds off your monthly repayment. It is therefore well worth shopping around for a better deal.
You can use a remortgage as an opportunity to borrow extra cash for debt consolidation, i.e. to raise capital to pay off other debts. If you have high-interest debts such as credit cards, clearing those through a remortgage can save you considerable sums each month.
A remortgage can also be an opportunity to change the term of your mortgage. You can reduce the term, so that you will become mortgage-free sooner. Alternatively, you may wish to extend your mortgage term, to reduce your monthly payments.
There are a number of possible costs associated with a remortgage. If you are moving to a new lender, you may have to pay to have your home revalued. Setting up a new deal can also involve a mortgage arrangement fee, which is usually added to your mortgage balance. Third, there may be legal fees to pay, in order to change the lender’s name on the mortgage.
As independent financial planners, we here at Principle First have access to the whole mortgage market. This gives us the ability to compare literally thousands of mortgages, to find the right remortgage for each of our individual clients.
