You could save money when you switch your mortgage. Swapping to a different deal with your existing lender, or moving to another lender, can reduce your repayments each month.
If you own your own home and aged over 55 years you could consider equity release plans. These plans or schemes release capital that is tied up in your home to supplement your finances.
Bad Credit Mortgages
Finding a mortgage or remortgaging with bad credit history can be tricky. A mortgage adviser who is experienced in bad credit mortgages knows which lenders will consider you before approaching them.
First Time Buyers
A mortgage adviser can assist first-time buyers by helping you to understand how much you can borrow and make you aware of any incentives like cashback, low fees, or a contribution towards legal costs.
When purchasing a property to rent out you must get a buy-to-let mortgage. Buy-to-let mortgage have stricter lending criteria as well as requiring larger deposits, these range from 25-40%.
An offset mortgage links your savings, and in some instances your current account, to your mortgage. This results instead of earning interest on your savings, you save paying interest on part of your outstanding mortgage balance.
Many of the best mortgages only last a short time – often two to five years – the typical length of time offered on a fixed rate, tracker or discount mortgage.
When it comes to an end, your lender will put you on its standard variable rate (SVR). It’s likely to be higher than your old interest rate and higher than the best buys available. If so, you want to be ready to remortgage to a cheaper rate. Start looking around 3 months before your rate ends.
You want a better rate.
If you are tied into an initial deal then you might have to pay an early repayment charge which can be huge, often 2-5% of your outstanding loan. Plus, there is usually a small exit fee (it might call it an 'admin fee' or a 'deeds release fee') when you repay any mortgage.
This doesn’t mean you shouldn’t consider it as the savings can be huge (especially if you have a large amount of mortgage debt).
Your home's value has gone up considerably.
If the value of the property has risen rapidly since you took out your mortgage, you may find you’re in a lower loan-to-value band, and therefore eligible for much lower rates. Again, you need to do your sums but it’s definitely worth a look.
You're worried about interest rates going up.
You need to check what is meant by rates going up. If it’s the Bank of England base rate that is predicted to go up, this may affect your mortgage payments directly, depending on the type of mortgage you have. If it’s the rates that new customers are being offered, then this doesn’t automatically mean yours will be affected.
You want to overpay & your lender won't let you.
Perhaps you’ve had a pay rise or maybe you’ve inherited some money. You now want to pay extra but your current deal won’t let you or it will only let you make a small overpayment.
A remortgage will allow you to reduce the loan size and potentially get a cheaper rate as a result. But watch out for any early repayment charges or exit fees you face, and compare this to how much you'd save with the new, lower mortgage.
You want to switch from interest-only to a repayment mortgage.
You shouldn't actually need to remortgage to do this, your lender should be happy to make the change for you.
You can even change part of the loan to capital repayment and leave some on your interest-only deal, which is particularly useful for anyone with an underperforming endowment mortgage which is expected to result in a shortfall at the end of the term.
However, it can be a different story if you want to change from capital repayment to interest only.
You want to borrow more.
Perhaps your current lender has said no to lending you extra money or the terms it's offering aren’t very good. Remortgaging to a new lender might enable you to raise money cheaply on low rates. But remember to take all the fees into account to see if it really is cheaper than other forms of borrowing.
The new lender will ask you what the extra money is for. Surprisingly, it is likely to be more comfortable with you borrowing the money for a new car than for business purposes. Not so surprisingly, it won’t want to lend you money to start a new business….
The most commonly accepted reasons to raise money are for home improvements and paying off other debts. Just be prepared for your lender to ask for evidence if you are borrowing a large amount, e.g. builder quotes or proof that you have paid off the debts.