There are a number of different reasons that you may want or need to remortgage your property. These can range from affordability to taking advantage of lower rates or a longer repayment term. Whatever your reasons for changing the mortgage you currently have, there are a number of steps that will guide you when it comes to making the right choice. Remember, it’s always a good idea to get a range of different options from a reputable mortgage adviser before you sign on the dotted line. We have answered the most frequently asked questions at What is the purpose of remortgaging?
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.
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? Questions such as these will help you determine the mortgage that’s right for you. For more information or to speak to one of the expert mortgage advisers at Private Wealth Mortgages, contact us on 01403 270006.
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