Here at Talk Mortgage Spalding, 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.
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
Benefits to remortgaging
Let’s take a look at a few benefits of remortgaging;
1. Reduces your mortgage costs
Once your introductory rate is over, you’ll pay a higher interest rate on your mortgage. This could add thousands of pounds in interest over the loan term.
2. Free up your capital
Lower payments mean you’ll have more disposable capital from your monthly income.
Releasing cash in the form of a more significant loan amount also means you can access additional equity from your home to pay for substantial expenses such as home improvements.
3. Adapt to life events
Your current mortgage deal may not offer the flexibility you now need. For example, if your income has decreased or increased since your original deal, you may want to change your monthly repayments or loan term.
4. Pay off your mortgage sooner
If you’ve received a windfall, such as an inheritance, you could be in a position to make an overpayment or even completely pay off your mortgage.
Remortgaging could save you thousands of pounds in early repayment charges and exit fees.
How can a Mortgage Broker from Talk Mortgage Spalding help me remortgage?
Getting the most valuable deal with a remortgage involves a fair bit of research and comparison. Talk Mortgage Spalding 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.
