A remortgage is a new mortgage with a new lender on a property you already own and have a mortgage on. Typical reasons why people remortgage are as follows:
Expiration of your current introductory mortgage deal – at the end of your fixed introductory period typically you will be transferred onto the lender’s standard variable rate (SVR). To avoid higher repayments In many cases it makes financial sense to move to another lender locking in a new introductory.
Debt consolidation – you may have some outstanding debt you wish to pay off, for example, a car loan, credit cards, student loan, bank loan or store card. Remortgaging allows you to raise additional money to pay off your outstanding debt.
Home improvements – you may be thinking about making improvements to your home. Common improvements include converting a small room or the garage into a home office, converting the loft into a bedroom or creating additional living space, extending the home and creating a living room/diner, extending to build an orangery or fitting bifold doors to the rear of the house so in the summer you can bring the outside space in when hosting those all important BBQ’s!
A large expense – you have a large expense like a wedding, school or university fees or you simply want to raise some cash as a deposit for your children to buy their first home.
In all cases a remortgage will be determined by the amount of equity you have in your home and an assessment of your affordability (i.e your income, expenditure and credit score).
If you wish to fully understand the options that are available feel free to click here to contact us to arrange a free 15-minute consultation where we would be happy to talk you through what may be possible.
Please Note: The Mortgage Xchange is a partner of Scott & Goose LLP who are directly authorised by the Financial Conduct Authority under reference 661183. Your home may be repossessed if you do not keep up repayments on your mortgage.