Here at Talk Mortgage Peterborough, we understand the need to get the best deal on your mortgage possible. With very uncertain times ahead of us, there is no better time to start considering remortgaging. With years of specialist experience, you can be safe knowing we will do our best for you.
“The average new two-year fixed rate – which was 4.74% has sky rocketed to 6.16% in October 2022, according to the data firm Moneyfacts. It was a similar story with five-year fixes, with the average rate shooting to 6.07%.” (source)
What is Remortgaging?
Simply put, Remortgaging is when you transfer your existing mortgage on your original property from one lender to another. The new mortgage will then replace your current mortgage.
Some people hear “remortgage” and immediately think “, more debt.” And while it’s true that you can remortgage to release equity in your property (meaning, borrow more and pocket the extra cash for home improvements), for most, it’s about saving money on monthly payments.
In that respect, it’s a bit like shopping around for a better broadband deal or a new mobile phone contract.
Should I consider Remortgaging my home?
Typical times to remortgage might be:
- When your current deal, especially a fixed-rate period, is ending
- If you believe interest rates might increase – a fixed-rate mortgage will lock the interest for 2,3, 5 or 10 years
- Switching from an interest-only to a repayment mortgage – or vice versa
- To get a better rate, especially if interest rates have fallen
- When your home has increased in value – a 5% decrease in your loan-to-value ratio could mean you get a better rate
- To use your equity to fund home improvements or pay off debts
- To get a more flexible mortgage – perhaps you want to overpay and reduce the loan more quickly
- To extend or decrease the term – the standard term is 25 years, but longer and shorter terms are often available
When is Remortgaging not a good idea?
Remortgaging is not always recommended. If you’re in one of the following situations, you might not find a cheaper deal:
- Your financial situation has changed
- You’ve had credit problems
- To avoid paying an early repayment charge
- You have little equity
- You don’t have much left to repay
- You’re already on a competitive rate
How can a Mortgage Broker from Talk Mortgage Peterborough help me remortgage?
Getting the most valuable deal with a remortgage involves a fair bit of research and comparison. Talk Mortgage Peterborough will do all the legwork for you – we explore your specific situation and find good value deals to meet your needs. We’ll look at rates, fees and criteria to recommend a suitable mortgage deal.
Contact us today for advice and recommendations on your remortgage options.
Because we play by the book, we want to tell you that…
Your home may be repossessed if you do not keep up with repayments on your mortgage.
