Switching your mortgage can seem like an intimidating process, however the process is relatively straightforward, and many homeowners with a mortgage will choose to do so at one time or another. The rate of interest set by the Bank of England has remained below one per cent since 2009 – these historically low-interest rates have enabled buyers and property owners to access better mortgage rates and deals in recent years.
Re-mortgaging involves taking out a new mortgage on a house you already own by either replacing an existing mortgage or in order to borrow money against your home. When you re-mortgage, you can either stay with your current mortgage provider or change to a new one – what is the best option will depend on your particular circumstances, so you should research the options available to you before making your decision. It is worth noting that you should speak to your existing mortgage provider before committing to re-mortgage as there can be fees if you proceed further.
This will depend on the terms and conditions of your existing mortgage and your reasons for wanting to re-mortgage. If your current mortgage is fixed-term, you might incur fees depending on the timing of your re-mortgage. It is always recommended to speak to your lender directly for guidance on your existing mortgage to help you decide if re-mortgaging is the right decision for you.
Re-mortgaging will be a good option if you can get a better deal than the one you currently have. Typically, this will be when there is a mortgage available where you will pay less interest and lower fees, or with more flexibility – for example, where you can make greater overpayments.
You might also want to re-mortgage if:
While these are all reasons to re-mortgage, doing so might not be the best decision depending on your circumstances. You should proceed with caution if:
For advice on re-mortgaging your home, call our residential conveyancing team today or complete our online enquiry form.
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