rda - mortgages - remortgaging

Tailored Financial Planning


			Re-mortgaging In today's competitive market, many borrowers choose to switch their mortgage every few years in order to take advantage of the new re-mortgaging rates on offer. Those that remain on the same deal for the full term of their loan could lose out on a range of potential benefits – not least the opportunity to reduce the total amount to be paid back, which could represent a significant margin in some cases.
			In simple terms, re-mortgaging involves switching your current mortgage to a new deal, arranged either with your existing lender or with a new lender. As a current homeowner you may want to consider taking this step for a number of reasons, such as: To save money If you are paying your lender’s Standard Variable Rate (SVR), it is highly likely that your existing lender will offer a better rate and greater flexibility on their other products. This could allow you to save money on your monthly repayments, or to repay your mortgage sooner. And if your current lender doesn’t offer better rates or greater flexibility on its other products, you may want to consider switching to another lender, even if doing so would trigger early repayment charges payable to your existing lender, as this could still mean a net saving to you. To raise money Higher income or a rise in your property’s value means you could increase your mortgage to help pay for major outgoings such as a wedding or your child’s university costs, rather than borrowing separately, and in some cases more expensively, for the outgoing itself. To avoid moving home It can be cheaper and more convenient to adapt or add an extension to your existing home, paid for by re-mortgaging or a further advance, than to move home. To consolidate your debts Re-mortgaging can allow you to release some of the equity you hold in your home and consolidate other debts, such as a car loan or credit cards, which can attract higher rates of interest than that of your mortgage. Contact us today Think carefully before securing other debts against your home Your home may be re-possessed if you do not keep up repayments on your mortgage. For mortgages we may be paid by commission or fee. If paying by fee this may be 1% of the loan, but we will discuss this with you at our meeting.