Whether you’re looking to re-mortgage to get a better deal or to raise money for home improvements, then it’s important to look around at what’s available rather than simply stick with the same lender you’re with now.
Your current Mortgage may have been at a discounted or fixed rate and at the end of your discounted or fixed rate period, your lender will usually change your interest rate to their standard variable rate (SVR). It’s a good idea to review your mortgage at this stage because the lender’s SVR may not be the best deal around.
If you change your mortgage to a new lender – remortgaging – you may benefit from a better mortgage rate. Some lenders also offer to pay the legal costs and valuation fees associated with remortgaging.
The good news is that there is a wide range of re-mortgage deals available and we’re here to find the right one for you.
If you have existing debts, it may be possible for you to add these to your mortgage rather than continue with your existing repayment arrangements.
This is not suitable for everyone and you’ll need to carefully consider this with your adviser. When you add loans to your mortgage, it is important that you understand the risks:
- Adding short-term loans to your mortgage means you will repay them over a longer term. This is because unsecured loans are generally paid back over a shorter term than mortgage loans. So, while the interest rate on your mortgage may be lower than you currently pay on your loans, by adding them to your mortgage you’re likely to pay more overall. Therefore it may not be appropriate to consolidate small or short-term debts.
- Your existing debts might not be secured on your property. By adding them to your mortgage they become secured on your property. Think carefully before securing other debts against your home. If you’re having difficulty paying your loans, it’s worth speaking to your creditors to see if you can negotiate better terms before considering adding them to your mortgage.
Think carefully before securing other debts against your home. Securing short-term debts against your home could increase the term over which they are paid and therefore increase the overall amount payable. You may have to pay an early repayment charge to your existing lender if you remortgage.