People often get confused about the exact definition of a re-mortgage (so if you weren’t quite sure then don’t worry, you’re not the only one!)
Put simply, a re-mortgage is a new mortgage on a property you own already.
You could take out a re-mortgage to replace your existing mortgage, or to borrow money against your property. Many people apply for a re-mortgage when they want to carry out home improvements, for example. Think carefully before securing other debts against your home. Your home may be repossessed if you do not keep up repayments on your mortgage.
But if you’re not looking to re-decorate your home, and you don’t need an extension or a garden office, then why would you want to re-mortgage?
Mortgages Need Looking After!
What does this mean?
Well, a mortgage term can run for up to 40 years.
When you start making payments, you’ll probably agree on a fixed rate that will last for two, three, five, or ten years.
After that time has passed, it’s likely that you’ll be automatically placed straight onto your lender’s standard variable rate (SVR).
As SVR is often the most expensive rate available, it makes sense to check re-mortgage options in good time before your fixed rate ends, so you don’t end up paying more than you need to.
What Are Your Re-Mortgage Options?
As a fee-free mortgage advisor, I’m not restricted to any one lender.
That means I’m able to analyse the whole of the mortgage market to find the right re-mortgage option for you.
It could be that you’re better off remaining with your current lender, but you select a different product with a different rate (this is still classed as a re-mortgage).
And in some cases, such as if your property is on the market, it could even be that staying with your lender’s SVR makes sense.
In all circumstances, I’ll ask about your current lifestyle, and listen carefully to your plans for the future, to ensure I can present you with the best re-mortgage options.
Can You Afford Not To Re-Mortgage?
That may seem like a strange question to ask, but some clients tell me that they don’t have to re-mortgage at all.
“Why change, when I can afford it?” one asked me recently.
But even if this is the case, I would still advise you to at least check your re-mortgage options. You could find another use for any potential savings… in that particular client’s case, I suggested they used them to start a savings account for their new grandchild.
The client was grateful for this suggestion, and it’s exactly what they did.
So, if your current rate has three months or less to run, or you’d like to finance some home improvement work, then why not contact me for a no-obligation chat?
All you have to do is let me know the details of your current deal, and I’ll take it from there.
What’s more, I’ll even keep track of your new rate, and you’ll receive one of my unique mortgage anniversary cards when it’s time to re-mortgage again!