Remortgages

What are Remortgages?
Remortgages are the replacement of an existing mortgage agreement either at the end of or during a lending term. Remortgages can be renegotiated with your original lender or replaced by a remortgage with a new lender.

Why Remortgage?
If your mortgage term is coming to an end and you have an outstanding balance you will need to arrange a remortgage. Alternatively, you can look to Save Money by renegotiating your mortgage package midterm. This can result in– lower monthly payments or additional equity (in the form of a secured loan) to use for home improvements, other loan or credit repayments, a car or even a holiday.

Things to know
Remortgaging can save you money!
If you have had a mortgage for several years you will have built up equity in your home which can result in:
a) A reduction in the total amount you need to borrow from a lender which can result in better interest rates and lower monthly remortgage payments
b) An increase the amount of equity for you to tap as a secured loan

It’s a good idea to compare your current mortgage rates with those in the market periodically. A great remortgage opportunity may not stick around long. Be aware that there will be fees involved! Arrangement fees, valuations and the like will need to be considered when you are comparing remortgages .Remortgages can take about one month to complete.

Where to find Remortgages
Lenders often advertise online and there are some sites who offer comparisons so you can check rates yourself. Of course you can take care of the whole process yourself but it can be time consuming and frustrating. Online offers sometimes are not updated regularly and comparing several offers can require a lot of number crunching. Using brokers for remortgages will make the process quicker and easier. Certified brokers will constantly be on the lookout for good opportunities and can make the process much smoother and easier for you.

How is the current mortgage market?
The mortgage market landscape has changed drastically since 2007. The number of lenders offering mortgage or remortgage products is significantly smaller than it was in its heyday. People in the UK searching for mortgage deals have had a tough time post crush with a reduced number of lenders, changing interest rates and the fact that those lenders still in the market have tightened their purse strings. Lenders cautious and less willing to take risks when lending have hurt the chances of first time buyers. Bank rate changes have also affected numbers for remortgages too.Remortgages make up half of all the mortgages taken out in the UK. Despite the changes over the last 2 years there are still savings available for those seeking remortgages