You have lived in your home for some time and you are coming to the end of your current deal, but not sure what the process is to re-mortgage, staying with the same lender for a better deal or moving onto another lender.
This article will help to make one a seemingly complex issue easier to deal with, my name is Hadi Naqvi, a Registered Individual from Beneficial Mortgages and I have been a mortgage adviser since 2006.
So in this video I will give you the Re-Mortgaging process in an easy to follow guide.
Re-mortgaging can be a simple process taking between 6 to 8 weeks to change from one lender to another. The main reason for people to re-mortgage is to keep a low rate of interest compare to going onto their current lenders Standard Variable Rate.
Generally the process is straight forwards, checking if the income and credit profile have still remained the same or improved since the mortgage was first taken out on purchase. The new lender product should be able to save some money on the monthly mortgage payments depending upon the rate of interest and if it is a Pound for Pound re-mortgage.
If income or credit has changed due to life changes – a family or a missed credit card payment, your current lender may be able to offer a Product Transfer which is remaining with your existing lender and picking a new deal, which can be a faster option as the lenders general approach is that the clients have the money already, so keep the payments affordable.
There may be another reason for re-mortgaging, such as accessing equity built up within your property to be able to pay for home improvements, purchase another property or pay off unsecured debt.
You could look to a Further Advance with your current lender, which would be another mortgage product at a different rate, but if they do not offer this, then you may need to look to another lender to re-mortgage away from your current lender. If you are still tied into the current deal and re-mortgage away, you would most likely need to pay an Early Repayment Charge to your current lender, another way around this could be a Second Charge, another mortgage on top of your current lender, but as with all of this, seek out specialist advice before you make any decision.
(Think carefully before securing other debts against your home. Your home may be repossessed if you do not keep up repayments on your mortgage – displayed in the video)
This is just the basics and I hope that you have felt at ease, there are as with everything, different aspects to re-mortgaging such as a drop in value of the property, adding a new person onto the mortgage or taking someone off, extending the mortgage term into retirement need specific and detailed advice, so click the link if you would like more advice or contact me on the number displayed below.
Remember when it comes to mortgages, come and talk to Hadi.