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Re-mortgaging is a significant financial decision that requires careful deliberation and, preferably, professional advice. At NEST Mortgage & Financial Solutions, our adept advisers can guide you through the re-mortgaging process, ensuring you make informed decisions that bode well for your financial future. Reach out to us for personalised re-mortgaging advice tailored to meet your unique needs.
Re-mortgaging is an option many homeowners consider at various times of their property ownership journey. It means switching your current mortgage to a new deal, either with your existing lender or a different one. The idea of re-mortgaging might seem daunting; however, with the right advice, it can lead to more financial flexibility. This blog aims to shed light on the when, why, and how of re-mortgaging your home.
When to Re-mortgage
Is it nearing the time for your mortgage rate expiry? It's wise to start reviewing your re-mortgage options six months before the expiry of your current rate. This grants ample time to think on the future for your property and to get a new product well in advance.
In case the rates reduce after the new rate is secured (before completion) we will keep an eye on it and advise to make changes. This is one of the advantages of speaking to an independent adviser like us at NEST Mortgage & Financial Solutions.
The best time to re-mortgage is typically a few months before the end of your current mortgage deal, or perhaps sooner if your things have changed. If you're on a standard variable rate (SVR) of interest, its likely that you could save money by re-mortgaging. The market is full of various mortgage products and trying to pinpoint the best deal could be overwhelming. This is where tailored advice from mortgage experts comes in.
The timing of a re-mortgage can significantly impact the benefits. Here are some scenarios when re-mortgaging might be a prudent decision:
- End of Fixed-Rate Term: Once your fixed-rate term ends, it’s sensible to look for new mortgage deal to avoid being moved to your lender's Standard Variable Rate (SVR).
- Improved Credit Score: If your credit score has improved since you took out your initial mortgage, re-mortgaging might fetch you a better interest rate.
- Interest Rate Trends: In a climate of changing interest rates, re-mortgaging could lower your monthly repayments.
- Home Value Increase: If your home value has increased, re-mortgaging could help you move to a lower Loan to Value (LTV) band, potentially lowering your interest rate.
Save Money: The primary motive for many is to save money by securing a lower interest rate.
Overpay: Some decide to re-mortgage to overpay their mortgage, thus paying it off quicker.
Raise Capital: Releasing equity from your home by re-mortgaging can provide a sum for other significant expenses.
Change of Circumstances: A change, like a change in income, might necessitate a re-mortgage.
How to Re-mortgage
- Assess Your Finances: Evaluate your financial condition, including income, outgoings, and future financial prospects.
- Check Early Repayment Charges: Confirm if there are any early repayment charges on your current mortgage which might affect the financial viability of re-mortgaging.
- Seek Professional Advice: Consult with professional mortgage advisers like those at NEST Mortgage & Financial Solutions to understand the benefits and implications.
- Find the Right Mortgage Deal: Compare various mortgage deals available in the market and choose the one that suits your circumstances best.
- Application: Prepare the right documentation, fill out the application, and wait for approval. This process will be smoother with the guidance of a seasoned mortgage adviser.
Re-mortgaging is a significant financial decision that requires careful deliberation and, preferably, professional advice. At NEST Mortgage & Financial Solutions, our advisers can guide you through the re-mortgaging process, ensuring you make informed decisions that bode well for your financial future. Reach out to us for personalised re-mortgaging advice tailored to meet your unique needs.
Think carefully before securing debts against your property. Your home (or property) may be repossessed if you do not keep up repayments on your mortgage or any other debt secured on it.