Remortgage

What is a remortgage?

A remortgage is when you alter your current mortgage in some way by either moving it to another lender, at the end of your initial rate period, or borrowing further funds against an existing property.

Do I need to remortgage?

This is entirely up to you, there can be significant savings made by moving your mortgage to a cheaper rate prior to going onto your Standard Variable Rate (SVR). Generally, you’re looking to remortgage in order to save money or raise money if your current lender won’t let you borrow more but another lender might. Remortgaging can be very useful to meet your current needs, especially if you’re in a different situation to when you first mortgaged. 

How can it save me money?

Mortgage lenders will sell a product with a rate based on a set period of time. This can be a fixed rate (where the rate doesn’t change) or a variable/tracker rate (where the rate can change depending on its type), with a few middle-of-the-road options such as discounted variable rates.

Let’s use a fixed rate example:

  • Lender X provides a 2-year fixed rate of 1.50% which works out costing you exactly £100 a month for your mortgage.

After the 2 years the rate will switch to the Lender’s SVR of 4.50%. This effectively means that you would then be paying 3 times the amount monthly than you were before, for the same mortgage. However, you could move the mortgage to a new lender that provides a cheaper rate than you were on before and, if not, certainly a cheaper rate than the variable rate would be when your current mortgage ends. This save you money!

Some lenders will offer the ability to switch products with them, this can be very useful as it’s generally pretty quick to do so with little, to no, effort. We can help here too and will often have exclusive rate options and terms than even the lenders’ offer themselves. We will always tell you if your best option is to stick where you are, if that’s the case.

 

Some of the main reasons to remortgage:

 

  • Your current mortgage term is coming to an end, this can be the full term or the initial rate period – eg end of the 2 years on a 2-year fixed rate mortgage)
  • You want a more competitive rate
  • Land value has increased or you think it will decrease
  • Interest rates are particularly low or you believe they will go up
  • Your current lender doesn’t offer certain facilities such as overpayments or further advances
  • You want to borrow more funds
  • You want to switch rate types
  • You wish to convert your current residence into a let to buy to buy a bigger house and rent your existing one

Can’t I just do this myself though?

The short answer is yes. The longer answer is you could, but it would take you a very long time going to every lender. Some lenders are broker-only and there are a host of smaller lenders that most people haven’t heard of, they can all have some great deals that you could miss out on without a broker.

We can search for mortgages across the whole market for you with the knowledge to pick out lenders that fit your circumstances. We will only ever recommend a mortgage to you if you are better off taking it than not, we will never recommend anything, remortgage or otherwise, that doesn’t make sense to your situation. That aside there is no cost to get the figures, so there’s no downside to finding out your options and seeing what kind of savings are available to you!

How much will this cost?

This really depends on the situation,  generally, you’ll expect some fees from the lender. The best thing to do is to give us a call and see what’s available. We always aim to get you some options , usually 2, 3 or 5 years, based on the total cost over the period on the same day. We do charge a broker fee which is only payable on mortgage offer; after going through the application and the lender agreeing to lend you the mortgage. The cost is entirely dependant on the size of your mortgage and will always be disclosed during the initial conversation over the phone.

Think carefully before securing debt against your home, your home may be repossessed if you do not keep up repayments on your mortgage.

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JW Mortgages Limited is authorised and regulated by the Financial Conduct Authority.

The Financial Conduct Authority do not regulate Buy to Let Mortgages.

J W Mortgages Limited is registered in England and Wales.  Registration Number: 10086660.  Registered Address: 1 Bamburgh Close, Rushden, England, NN10 0TD

Registered in the UK. Company Number: 10086660 with FCA number 938878

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE 

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