When you change your mortgage lender without changing your home it’s classed as remortgaging. With the new year upon us, you may be reassessing your finances by looking for a cheaper mortgage deal, or exploring your options for fixing your mortgage to avoid any uncertainty in the near future.
What are the main reasons for remortgaging?
- If your mortgage deal is due to end soon, you may be looking to take out a new deal to avoid paying the Standard Variable Rate (SVR) on your current mortgage product which could be higher than the interest rate you’ve been paying.
- You could be in the middle of your current mortgage deal but have found a more suitable option elsewhere. Make sure to check the early repayment charges (ERCs) with your current lender before switching.
- If you’re wanting to make overpayments on your mortgage, you may be thinking of switching to a lender who will let you make higher payments than your current lender allows.
- Your home’s value may have risen since you took out your mortgage, so you may find you’re eligible for a lower rate.
- You may want to secure a fixed rate deal in case interest rates go up.
- You may be looking to borrow more money against your home to make improvements to it.
What should I think about before remortgaging?
- Most mortgages have ERCs, so check your documents to make sure that you can afford the costs and it is worth it in the long run.
- If your circumstances have changed since you took out your current deal, check with the lender you are looking to move to, to make sure your circumstances are acceptable to them.
- Check your credit file to make sure that your credit score hasn’t changed since you took out your mortgage. For example, if you’ve missed a payment on a credit card recently, this could affect you when taking out a new deal.
Where can I find more support?
We have a dedicated mortgage team who can offer free advice to help you review your mortgage needs, whether you have a mortgage with us already, or are looking to move to the Marsden. Call 01282 440500 or visit our Remortgaging page for more information.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.