Get in touch when your current deal ends in the next 6 months
The remortgage process involves transferring your current mortgage to a new lender or staying with your current lender but on a different deal. This generally happens when your fixed rate period ends, or there are other reasons to remortgage in the UK.
You may want to consider remortgaging in the UK if a big life change is coming up, to help you raise money for home improvements or you are embarking on a special purchase – but always think carefully about whether you can afford the extra amount over the full mortgage term.
Fixed period coming to an end?
The majority of mortgages are arranged on a fixed-rate basis over periods of generally 2, 3 or 5 years fixed. Around 6 months from when your current mortgage deal is due to end is the time to check the latest remortgage deals.
Otherwise, your current rate will be moved to the current lender’s standard variable rate (SVR), which will probably be higher than your fixed rate. You should check remortgage options as soon as possible if you have already moved to a follow-on rate to save you money.
Do not wait until just before your current fixed rate mortgage ends, because the process takes time. Start the process around 6 months before to ensure you secure today’s rate and this will give you enough time to prepare the paperwork and go through affordability checks.
Read our blog on How long does a mortgage offer last?, which includes details of re-mortgage considerations, the application process and more.
Thinking of making home improvements?
If you want to embark on some home renovations, then remortgaging is an option. There are four options when raising finance for home improvements:
- Remortgage with your current mortgage lender: If you are at the end of your fixed rate, remortgaging with them is a consideration, if their interest rates are competitive. This option will cost less than remortgaging with a new lender.
- Approach your current lender: Even if you are not nearing the end of your fixed term, you could always contact your lender to see if they will waive any fees and transfer you onto a new deal early. This will benefit you both as you will get the amount you need, and they will keep you as a customer for the new fixed term.
- Further advance: If you are in the middle of a fixed rate term, or are happy with your current lender, then you could borrow money by way of a further advance. They will carry out the necessary checks to make sure your income will cover the advance, and the amount will be added to your current mortgage at the fixed rate.
- Remortgage with another lender: At Greenacre Financial Services, our remortgage services have access to over 100 lenders throughout the UK, offering whole of market mortgage advice. This is a great way to search the full market to find the best deal for you.
Read our Top tips when choosing remortgage options, because it is important to take advantage of all advice you have access to.
Need to change your mortgage terms?
It is a comfort to know that a mortgage term can be changed along the way if needed. Finding a new mortgage may be beneficial if your income becomes variable, you are in the position to make overpayments, you are looking for flexibility with your mortgage payments or need help budgeting with payment holidays.
However, changing your mortgage term will have an impact on your financial situation, so it is really important that you understand your options. We are here to discuss the best option for you, whatever your circumstances. We will help you with the mortgage application process and avoid early repayment charges and any other charges where we can.
Need to consolidate debt?
Raising money by remortgaging to allow you to pay off short-term loans or credit cards from several providers will give you a lower single payment. You will need to declare your intention so that the lender can decide if you are a good risk by checking your credit score.
Note that if you are planning to consolidate debts into the re-mortgage, you should seek independent financial advice. Your home may be at risk if you cannot make the payments. You will need to avoid getting into short term debit again.
Releasing equity
Equity is the difference between the current value of your property, and the amount outstanding on your mortgage. The more this amount is, the better equity release will be. If you are nearing the end of your fixed term, it will be a good time to remortgage at a competitive rate and, at the same time, release equity.
You may want to use this equity to buy a second property, start a business, home renovations, help your children out or live out your dreams travelling the world. Whatever your reason, we are here to help by searching thousands of different mortgage schemes.
If your fixed mortgage rate is coming to an end, and you are considering remortgaging in the UK, or any other reason, get in touch. We can give you all the expert advice to help you get the most out of your mortgage, protection and home insurance.
Unlike many of our corporate competitors and other mortgage brokers we are a completely independent Whole of Market Mortgage Broker. We offer a choice of around 100 lenders and up to 25,000 different mortgage schemes.
