Remortgaging

At Protection and Investment, we very much
believe that if you fail to plan, you plan to fail.

Should you remortgage?

At PIL Southampton, we’ve observed a notable uptick in client inquiries regarding the opportune moment for remortgaging, which involves securing a new mortgage on a property you currently own.

We understand that everyone’s circumstances are distinctive, and we are here to provide guidance and support. Recognising that individuals may not be immersed in mortgage considerations daily, our expertise in navigating mortgage terms and deals consistently proves to be immensely valuable for our clients.

Why do people
choose to remortgage?

End of a fixed rate mortgage period

One frequently encountered scenario prompting individuals to consider remortgaging occurs when their fixed-rate mortgage term concludes. Upon reaching this point, they are often transitioned automatically to the lender’s elevated standard variable rate, leading to an undesirable uptick in monthly expenses.

Financial circumstances have changed

If you find yourself in an improved financial position, such as receiving a significant inheritance or securing a generous salary increase, you might consider utilising these additional funds to make overpayments on your mortgage. This strategy can effectively reduce both your outstanding capital and subsequent interest payments.

Competitive mortgage deals on the market

You might sense that the current mortgage market offers more competitive deals than when you initially secured your mortgage. Even if you’re bound by an existing agreement, it could be advantageous to assess the potential long-term benefits. Considering the overall savings, it might be worthwhile to pay an early repayment charge (ERC) and potential exit fee for a better mortgage arrangement.

Value of your home has increased significantly

If the value of your home has risen significantly since you initially took out your current mortgage, you could find yourself in a lower ‘loan-to-value’ category. This change in your home’s value may render you eligible for more favourable mortgage interest rate deals.

Your current mortgage deal doesn’t let you overpay

Suppose your existing mortgage arrangement restricts overpayments or permits only a limited amount. In such cases, it might be worthwhile to consider remortgaging. However, careful consideration is essential, involving a thorough assessment of the advantages of overpaying versus potential costs like early repayment fees or exit fees.

Interested in a more flexible mortgage

You may find appeal in a more flexible mortgage, particularly one that permits payment holidays, offering convenience during transitions such as changing jobs, traveling, or pursuing further education. Alternatively, the concept of a mortgage that integrates with your savings account might catch your interest. However, it’s important to keep in mind that such ‘extra option’ mortgages often accompany higher interest rates, as nothing in this realm typically comes without an associated cost.

Take control with a FREE initial meeting

There are many more types of mortgages. If you have any questions and would like to learn more about the types of mortgages available to you, contact us today for a free initial meeting.

Preparing to remortgage

Numerous strategies can enhance your likelihood of securing approval for your remortgage. Just as when you applied for your current mortgage, lenders seek financial stability and assurance that you can consistently meet your monthly mortgage obligations in the long term. Here are some approaches to improve your chances as well as things to need to consider before applying to remortgage.

Use comparison sites to benchmark the rates that are available for your circumstances
Look at your current and predicted income and expenditure
Think about the credit and affordability checks
Check the early repayment payment
Avoid making large purchase
Cancel unused accounts
Check your credit score

Remortgage FAQs

Looking to remortgage?
We' love to help!

At Protection and Investment, we’re expert Mortgage brokers and advisors, who pride ourselves in helping home owners remortgage. . Book a free initial meeting with us today.