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Reasons to Remortgage

Suitable Versus Unsuitable reasons to Remortgage

There are many good reasons for remortgaging, equally there are situations where it is not the best option.

The likelihood is you will benefit from remortgaging if:

Your current fixed rate is ending

Unless you secure another rate, you will default to the lender’s standard variable rate (SVR), which is usually a higher rate. On a SVR your mortgage payments will often increase. Remaining on a SVR rate is most likely not your best mortgage rate option.

The value of your home has increased

If your loan to the current value of your home has fallen, the increased equity may allow you to raise additional money to fund home improvements/ debt consolidation etc. Lenders will have specific maximum loan to value ranges for remortgage types.

You should think carefully before securing other debts against your home. There are other ways to manage debt such as free debt advice charities, you can find out more by contacting the Money Advice Service https://www.moneyhelper.org.uk/en these services may be more suitable for you.

You want to change your existing mortgage loan type

Changing your property use from residential to Buy to Let or vice versa, then a remortgage may be required.

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Remortgaging is unlikely to be suitable if:

Your existing mortgage has high early repayment charges (ERCs)

Although a remortgage is likely to result in significant monthly savings, the ERCs or exit fees if substantial can outweigh any direct savings from remortgaging. Honest, professional advice is crucial at this stage to determine financially what is best for you.

Your remaining mortgage debt is less than £50,000

If you are looking to do a straight £ for £ remortgage on an existing balance less than £50,000 is it likely we will advise you to secure a product transfer rate with your existing lender, as the fee associated with remortgaging to another lender may outweigh any saving benefits.

Your financial circumstances have been impacted negatively

If your financial circumstances have negatively changed i.e. loss or reduction in income, recent adverse credit, your ability to remortgage may be impaired. Honest, professional advice is crucial at this stage to determine financially what are the best options for you.

Your loan to property value is very high or you are in negative equity 

A lender will not accept a remortgage application for any property in negative equity. Lenders will have specific maximum loan to value ranges for remortgage types. In these circumstances we would look at a product transfer rate with your existing lender.

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE

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How to find us
155 Spencer Road Derry-Londonderry BT47 6AH

CONTACT

Kelli Wilson trading as KW Mortgages is an Appointed Representative of PRIMIS Mortgage Network which is a trading name of First Complete Limited. First Complete Limited is authorised and regulated by the Financial Conduct Authority. 

Your home may be repossessed if you do not keep up payments on your mortgage.

We do not charge a fee for initial consultation or insurance advice. However, depending on your circumstances and the mortgage product, if we charge a fee it will range from £250 - £300, which will be payable on receipt of a formal mortgage offer. The fee will be discussed and agreed with you at initial consultation.  

The guidance and/or advice contained in this website is subject to UK regulatory regime and is therefore restricted to consumers based in the UK.

+44 7834 029614
office@kw-mortgages.com
Kelli Wilson trading as KW Mortgages is an Appointed Representative of PRIMIS Mortgage Network which is a trading name of First Complete Limited. First Complete Limited is authorised and regulated by the Financial Conduct Authority. 

Your home may be repossessed if you do not keep up payments on your mortgage.

We do not charge a fee for initial consultation or insurance advice. However, depending on your circumstances and the mortgage product, if we charge a fee it will range from £250 - £300, which will be payable on receipt of a formal mortgage offer. The fee will be discussed and agreed with you at initial consultation.  

The guidance and/or advice contained in this website is subject to UK regulatory regime and is therefore restricted to consumers based in the UK.

© 2022 KW-Mortgages | Kelli Wilson Mortgages & Protection
© 2022 KW-Mortgages | Kelli Wilson Mortgages & Protection
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