RE-MORTGAGE

Expert bespoke advice personalised specifically to your needs

When you re-mortgage, in affect you are switching your mortgage to another product and frequently another lender.

The main reason people re-mortgage is to find a cheaper product when their current one is coming to an end or has expired. For example, if you initially took out a two-year fixed rate product, after the first two years your mortgage interest rate will revert to the lenders standard variable rate (SVR). The standard variable rate can be significantly higher than the initial rate you took out therefore, in some cases it is beneficial for you to re-mortgage to find a cheaper alternative.

There are other reasons people may want to re-mortgage some of which include, to raise equity or to consolidate debt. In these cases, you will have to change lenders.

It is worth noting that a re-mortgage is not the best option in all cases. Even if the lender you are considering switching to is offering a lower annual percentage rate (APR). Things to consider;

• The new lender may charge for valuation and solicitor fees.
• You may have to pay an early repayment charge to your current lender if you switch products before your current one expires.
• You may be better off with a simple product transfer with the current lender once your product expires, avoiding valuation and solicitor’s fees.