Reasons why you should consider a remortgage

Remortgaging is the process of moving your mortgage on your existing property from one lender to another – either to replace your current mortgage or to borrow extra funds against your property. Your new mortgage will then replace your old one. For most people, having a mortgage is by far their biggest financial commitment and it follows that streamlining the largest debt can produce the largest saving – sometimes £1,000s each year.  You might be surprised to hear that around a third of all home loans made in the UK are remortgages – but as with most things in life there are pros and cons depending on your specific circumstances…in this blog we take a look at some of the top reasons why you should consider a remortgage…

Some reasons why you should consider a remortgage

Lower Interest Rates

One of the most significant benefits of remortgaging your property is the ability to take advantage of lower interest rates. If you have been paying a high interest rate on your mortgage, you may be able to secure a lower rate by remortgaging. This can result in lower monthly payments, allowing you to save money or spend it on other expenses.

Your current mortgage rate is coming to an end

When your existing mortgage rate ends, you’ll usually move onto your lender’s standard variable rate (also known as SVR). This can be more expensive than your current rate so your monthly mortgage payments may increase.
To avoid paying more, you can remortgage to a new lender in readiness for when your current mortgage rate finishes. It’s a good idea to start researching your options at least 6 months beforehand so your new deal or mortgage can start as your current one ends.

You want to increase your borrowing

You may want to borrow extra money against your home – this could be for many reasons such as wanting to carry out home improvements or to fund further education for your children. If your current lender is unable to increase the amount you want to borrow or offer you the deal you want, you can speak to another lender to see if they can help.

The value of your home has increased

If the value of your home has gone up, you could benefit from a lower loan-to-value (LTV) ratio. The LTV is your outstanding mortgage amount in relation to the value of the property, shown as a percentage. Having a lower LTV could mean you are eligible for lower rates. You can contact your lender to find out what your LTV ratio currently is and, if it has changed, what new interest rate options are available to you. If your current lender is not able to offer a deal you want, you can then see what other lenders can provide.

How can we help?

Using a solicitor when remortgaging your property is highly recommended. A solicitor can provide valuable legal advice and ensure that the remortgage process is executed correctly. They can help you understand the terms and conditions of the new mortgage and provide guidance on any potential risks or issues. They can also assist with the legal paperwork and ensure that the remortgage is registered with the Land Registry. By using a solicitor, you can have peace of mind knowing that your remortgage is being handled professionally and in compliance with all legal requirements.

Here, at Hunton & Garget, we have vast experience across the remortgage sector and are always happy to answer any queries you may have – you can find full details of our services here and please don’t hesitate to contact us if we can be of any assistance.