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Is now the time to remortgage?

A man looks at bills and a calculator as he considers a debt consolidation loan

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At Clever Mortgages, we have access to the latest remortgage products from a wide range of lenders. With interest rates remaining low you could switch to a new mortgage product to save money by getting a lower rate.

There are also different types of mortgage to consider, such as a fixed rate, so you know what you’re paying each month. If the value of your home has increased, you could borrow more than the value of your mortgage to consolidate other debts or make important home improvements to increase the value of your home.

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The advantages of a remortgage

Remortgaging, potentially with a new lender, can make can make a real improvement to your finances in the longer term by:

  • Getting a remortgage at a lower rate
  • Saving money by reducing your monthly payment
  • Having additional borrowing for other uses, such as clearing debt or home improvements
  • Being able to choose from a wide range of products, such as fixed rates
  • Potential to reduce the term of the Mortgage.
  • Transferring an interest-only mortgage to repayment
  • Raising money to buy another property
  • Being able to apply for better loan to value (LTV) products and rates if your house value has increased

What you should consider before remortgaging

Although there are a number of advantages of a remortgage, it’s also worth noting that increasing the length of your mortgage will increase the overall cost. Fess associated with a remortgage may also mean it’s more cost-effective to negotiate a lower rate on your current loan. Plus as the remortgage process does take a few weeks, it’s important to see the process through to the end.

Debt consolidation can be complicated and it is important you have reviewed both the short term and long term costs of this.  Any unsecured debts consolidated within the mortgage, would then be secured against your property. Please ensure you speak to an expert adviser.

How we recently helped a customer who needed to remortgage

One customer came to us as he was on a higher than average standard variable rate with his existing lender. He also wanted to raise the funds to clear his partners’ debt management plan.

We sourced a new lender with a much lower rate which also allowed for additional borrowing above the mortgage amount.

Due to such a large reduction in rate, we managed to increase the mortgage to clear our customer’s debt management plan which was for £9,000. With him only paying £20 per month, it would have taken 37.5 years to clear (assuming interest and charges are all frozen).

We were also able to reduce their entire mortgage term by three years and still reduced their payment by £16 per month.

The customer was delighted with our service and his credit profile is now improving.

Watch our video on the remortgage application process

The current remortgage market

The remortgage market is very competitive and this is good news for borrowers. It means there are lots of lenders willing to lend on a wide range of customer circumstances, for example, if you’re self-employed or have a less than perfect credit file.

Because your mortgage is probably your biggest financial commitment, this is also an opportunity to save significant amounts of money by looking at other, lower cost mortgage products.

When customers remortgage they often look at when the mortgage term ends and use this to fall in line with what they can afford each month or to tie in with life goals, such as retirement. We can take all of these factors into account and look at the most suitable product, rate, term and amount to help you get what you need from your new remortgage.

How Clever Mortgages can help

At Clever Mortgages we treat our customers as individuals and we know that everyone has their own set of circumstances. Our expert team will take these into account when looking to find a positive outcome for you.

We will take the time to fully understand your remortgage requirements and work on your behalf to look at all possible options to find the most appropriate solution for your current circumstances and future financial journey.

For every customer our aim is to find a solution that suits your plans, and one that you can afford now and in the future – so make sure to talk to one of our friendly team today.

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