When remortgaging there are so many considerations: ‘Do I need a solicitor to remortgage?’, ‘how soon can I remortgage after buying a house?’, ‘how long does a remortgage take?’, ‘can you remortgage with bad credit?’ or even ‘is it better to remortgage or get a loan?’ Our qualified advisors can help you with all of these, but in the meantime, we have a number of steps below that may help to guide you initially. It’s advisable to get expert help before making any firm decisions and our team offer an initial consultation with a review of your current circumstances for free and with no-obligation.
Work out how much you can afford for your remortgage
If you have an existing mortgage, you will already have a good idea of what you can afford to repay overall on a monthly basis. This is a good place to start when it comes to remortgaging. The choice you make will depend on your own personal circumstances. For instance, you may earn significantly more than you did when you originally bought your property and want to upsize. Or perhaps you are making some changes to your personal circumstances, such as starting a family, and would therefore like to reduce your monthly payments for more security in the short term. Some clients have asked us: ‘Does it cost to remortgage?’. There are some costs associated with remortgaging, such as, arrangement and booking fees, and if you’re choosing to remortgage before your current deal ends, exit fees. Legal fees can mostly be avoided by choosing the right lender or a remortgage package that includes a free legal service. In some cases, however, even with the early redemption penalty charges, switching to an alternative interest-rate deal can, when totalled up, actually save you money.
Fixed Vs Variable rates
One of the biggest decisions you’ll have to make if you want to remortgage your home is whether you go for a fixed or variable rate. A fixed repayment rate means that the interest rate you pay on your home loan will remain the same for the duration of your mortgage contract. A variable rate, which is sometimes referred to as a tracker, can be adjusted by your lender according to the Bank of England base rate. Put simply this means the cost of your monthly mortgage payments could increase or decrease over time.
Do your remortgage research
It’s a good idea to seek advice from a professional, qualified mortgage adviser if you want to remortgage your property. However, in advance you can also conduct your own research into the rates and lenders available on the market. By using a mortgage calculator, you will be able to enter your own income information and obtain a list of potential options. This will help you assess which options might be best for you.
Long term plans
As with any mortgage, it’s important to review the long-term plans you may have. Do you want to stay in the same property? Are you planning to start a family? Or are you hoping to retire within a few years? Considerations such as these will help you answer the big question of ‘is remortgaging a good idea?’
We can help you answer the big questions and the little ones:
Our expert advisers will assess your entire financial situation and current mortgage. This includes the amount you are currently paying, how long it will take to pay down the loan and any short term and longer plans you have. We specialise in providing mortgage guidance for your personal circumstances to determine the one that’s right for you.