Like every other financial market out there, the mortgage market moves up and down, fluctuating all the time. As such it’s important you think about checking your mortgage regularly to see if it’s still suitable for you. Sounds boring, we know. But when you realise that you could potentially be saving hundreds of pounds each month, wouldn’t you like to do something about that? Remortgaging could be the answer.
Why is it important to review my mortgage regularly?
By regularly reviewing your mortgage you can be sure that you’ll never be paying an unfair amount for your mortgage and you might even find that you’re in the position to remortgage: meaning you could be saving some money!
It’s a good idea to keep checking new mortgage deals on the market fairly often, but with our busy lives it’s easy to lose track. At the very least we advise you review your mortgage when interest rates change, your current mortgage comes to an end, or just once a year to see how your current deal compares to new ones. It doesn’t take long to check, but it can have a major impact on your life when you make huge savings each month, leading to thousands saved each year.
Why would I want to remortgage?
- To save money – you may be aware that your current lender has better rates available that you can consider for your mortgage, but don’t stop looking there. Switching your mortgage to another lender could mean even greater savings, even if this would trigger early repayment charges to your existing lender. It’s worth taking the time to carefully check each detail to work out how much you will be paying in the immediate future and in the long term: potentially saving thousands of pounds in upcoming years.
- To raise money against your house – remortgaging is often a convenient way to bring in some extra money. This is generally used to pay for home improvements, big occasions such as weddings, or to consolidate debts (although this needs to be taken very carefully and you need to understand the risks associated with consolidating debts by remortgaging)
- To avoid moving home – you may find that it’s much cheaper and convenient to expand your current home instead of moving to a new house. By remortgaging you can afford to make the necessary changes to suit your growing family, while still keeping the place you’ve learnt to love and call home.
- To get a more appropriate mortgage – our lives are constantly changing and moving forward, and your mortgage should do the same. Starting a family and other big milestones in life are good times to review your mortgage. You may find that due to the big changes in your life, you might need different terms or features on your mortgage so that you can live comfortably with a mortgage that works for you and your budget.
- For equity release – you can get some money released if your home has increased in value since you got the mortgage. In this situation you’d be paying more for your mortgage regularly, but you do get a lump sum of money for you to spend. Generally you have to be over the age of 55 to take out an equity scheme, but this may depend upon each lender. You can always talk directly to an Active Brokers adviser to see if this type of scheme is right for you.
Remortgage to Make your Home a Better Place for your Family
When is a good time to remortgage?
The right time to remortgage will depend on your individual circumstances as well as the size and remaining term of your outstanding mortgage. Of course, the most obvious time is when your current deal is coming to the end: it’s better to plan this in advance so the transition is as smooth as possible. But even if your current deal is coming to an end, it could be worth holding back from remortgaging if the time isn’t right, for example: your current deal is as good as it can be, you’re locked in with penalties, the timing doesn’t work with the current state of the mortgage market, you own 10% or less of the property, you have bad credit history, or your circumstances have changed too far meaning that you may not fit the criteria of a new lender. Talking to a financial or mortgage adviser at Active Brokers can help you figure out when exactly is the right time for you.
How long does remortgaging take?
Remortgaging will take a different amount of time depending on your lender, whether you go through a broker and the specifics of your current mortgage. Generally a few weeks or a month are the minimum time it takes to get a remortgage under way. You will save yourself a lot of stress and time by seeking professional advice and aid to start the remortgaging process, and you’ll also reduce the risks of something going wrong by having unbiased advice on what’s best for you.
This is where Active Brokers can help you. Located in Essex, we are a local business working hard over the phone to give you advice and guidance on some of the tricky financial decisions in life. Our free quotation service can not only help you with remortgaging, but also all kinds of insurance from Life Insurance to Commercial Insurance, as well as Critical Illness cover and specialist mortgages. Don’t hesitate to give us a call immediately.