A man and woman embrace as they look at a laptop together and decide to remortgage

Reasons for remortgaging your home

Remortgaging is a process that most homeowners will go through at some stage in their lives, yet many don’t fully understand what it is or how it works. There are a number of reasons why you might choose to remortgage your home, whether it’s to save or raise money.

What is a remortgage?

Remortgaging is quite simply the process of changing your mortgage product over to a new deal. This can either be with the same lender or by moving to a different provider. Switching your mortgage deal when moving house is also classed as a remortgage.

Why should you remortgage?

It’s now becoming less commonplace for people to stay with the same mortgage for the full term. This is because homeowners are continuing to see the benefits of remortgaging. You can use a remortgage for a number of reasons:

Remortgaging to save money

A remortgage can be used as a method of saving money by switching to a different deal with lower monthly payments. You might do this if:

Your current deal is about to end

The most common time people choose to remortgage is after the introductory period of your mortgage. At this time you might be on a fixed, tracker or discounted rate. Remortgaging allows people to shop around and make the most of the best deals and lowest interest rates available.

You’re looking for a better rate

Remortgages are mostly used to get a better deal on your existing mortgage. Although many wait until the end of their introductory period, some will also decide to switch midway through a deal if it actually saves money. However, there are usually exit fees that you will need to take into consideration when switching mortgages. ou should carefully do the maths beforehand.

A fixed mortgage is preferable

A lot of people prefer to be on a fixed term mortgage as it allows them to know exactly how much their mortgage costs will be each month. Many fixed mortgages are only available during the mortgage introductory period, moving onto a standard variable rate (SVR) where the rate will fluctuate. To avoid changing to an SVR many people will decide to switch to other fixed mortgages once their initial offer is complete.

Remortgaging to raise money

You can also use a remortgage to raise money by releasing some of the equity in your property. This is done by taking out a larger mortgage than the one you currently have. You might use these funds to:

Consolidate your debts

The money that you raise from remortgaging your home can be used to consolidate debt. Lenders won’t usually just allow you to take out a larger mortgage but are more likely to approve this if it’s to help improve your financial situation.

Carry out home improvements

Another reason that lenders will consider a remortgage as acceptable is to carry out home improvements. This might be for a new kitchen, a loft conversion or even an extension. Home improvements can either help to make your home more livable for you or could make it more attractive for future buyers.

For more information on remortgages, find out more information from a member of our team.

Bad Credit Remortgage

If you’ve got a mortgage you might be able to make huge savings each month by remortgaging, even if you’ve got bad credit

We’ve helped hundreds of customers like you find a bad credit remortgage product that makes a real difference to their monthly outgoings. Here we’ll cover:
What a remortgage is, and reasons to consider remortgaging
How we helped our customer get a remortgage deal, even with bad credit
Why it’s best to go through a mortgage broker when you’ve got bad credit
Remortgaging could be easier than you might think – what your next steps are

What is a remortgage?

A remortgage is when you take out another mortgage on your home to replace your current mortgage, or to borrow extra money against your property.

You would remortgage a property to either raise or save money:

Raise money

You can raise money by releasing equity in your home and taking out a new mortgage that is larger than your existing one. You could do this to consolidate debts, make home improvements, or fund something else in your life.

Save money

You could save money by remortgaging and switching to a cheaper mortgage provider – making your monthly payments smaller each month. You will need to check the terms of your contract though to make sure you aren’t charged any early exit fees.

As your mortgage is likely to be your largest debt, it makes sense that improving on it can also give you the largest saving – a saving that can add up to thousands of pounds each year.

Exactly how much you could save will depend on several factors, including:

  • How much equity you have in your property
  • What your current deal is like
  • Whether there is a fee for ending your current mortgage deal
  • Whether your home’s value has increased
  • How much your remortgage costs

How we helped one customer by finding a bad credit remortgage:

With Clever Mortgages, Mr and Mrs C were able to:
Get a debt consolidation remortgage, even with a poor credit history Secure a fixed rate of 2.10% Save almost £500 each month on mortgage and debt repayments

 BalancePaymentRateProductTerm
Current Mortgage£61,000£4901.25%Lifetime tracker12 Years
Current Secured Loan£43,000£43610%Standard Variable Rate12 Years
Unsecured debts£44,320£657VariousVariousVarious
New Mortgage£150,000£1097.672.10%5 Year Fixed13 Years

Mr C had been in an IVA, which he’d now completed, and Mrs C was currently in a Debt Management Plan. They wanted to consolidate their secured loan, plus three other debts, into a new mortgage product – hoping that this would bring down their monthly repayments.

At Clever Mortgages we were pleased to be able to help them, and we secured them a new mortgage which is now saving them a significant £485 every month! This is making a real difference to their lives, and helping them get back on track, improving their credit score.

What do I need to know about getting a bad credit remortgage?

Remortgaging can help you to save money every month, and can also be a good way to get a lump sum of money, instead of taking out a personal loan.

As a mortgage is such a large financial commitment, it’s important to give it plenty of consideration – but don’t panic either, our team help customers every day to decide what to do next when it comes to mortgages and their situations. We can help you:

  • Understand different mortgage options, including fixed and variable mortgages
  • Understand also how equity releasing from your property can work
  • Consider any risks, such as whether you can manage the monthly repayments
  • Find out your potential best options for if you did go ahead and remortgage

Next steps for a bad credit remortgage

If you want some expert advice on remortgaging, and what it could mean for you – get in touch with our team today. You can call us on 0800 197 0504, or enquire online.

You can also find lots of advice on all things mortgages, in our Guides and Advice section.

What are the benefits of remortgaging?

A remortgage is when you take out another mortgage on your home to  replace your current mortgage– and we can help you with this, taking all the hassle away from the remortgaging process.

It’s sometimes possible to secure a lower rate, giving you the opportunity to consolidate your debts, whilst saving yourself money every month. Debt consolidation can be a good solution for some mortgage customers – however, it’s not suitable for everyone.

You should always review the total amount payable through consolidation,  not just the immediate savings in terms of a reduced monthly payment. Please be aware that any unsecured debts consolidated within the mortgage, would then be secured against your property.

We’ve helped 1000s of customers to remortgage – and bring their monthly payments down.

Want to remortgage with bad credit?

Worried about bad credit? We work with customers every day who have bad credit but want to remortgage – and we always do what we can to help.

Remortgaging could be easier than you might think – especially when you choose a broker who knows how to get you with the right lender to save you money.

Enquire with us about a remortgage with us, and we could:

A debt consolidation mortgage can help you save money every month – we recently helped Mr C who was nearing the end of his fixed rate deal, to consolidate his secured loan and mortgage into one monthly repayment reduce the mortgage term and save money.

Help get you back on track – being able to consolidate Mr C’s secured loan with a mortgage product meant only having to plan for one monthly payment instead of two, making the overall debt much easier to stay on top of.

Reduce the term of your mortgage – we can often help customers cut years off their mortgage – helping them to become mortgage free far sooner than they thought.

Why should I use a mortgage broker?

You’re likely to only have to do one application – this will save you time, and more applications from being recorded on your credit file

Some mortgages especially for people with bad credit are only available if you go through a mortgage broker

Brokers can advise on what would improve your chances – e.g. finding a guarantor or opting for a joint mortgage

They can take the hassle of application forms away – talking you through every step, and asking all the right questions

What next?

If you are looking for expert advice on remortgaging your property, contact our team today. We will be happy to help advise you on what you on your options.

We are experts in offering solutions to people with bad credit and can help you if you need a helping hand with your next move.

Get a call from a mortgage advisor at a time to suit you

Kitchen being upgraded after a remortgage

Why Should I Bother To Remortgage?

Remortgaging can help you to save money every month, and be a good way to get a lump sum of money, instead of taking out a personal loan.

What is a remortgage?

A remortgage is when you take out another mortgage on your home to replace your current loan or to borrow extra money against your property.

Why would you want to remortgage?

You would remortgage a property to either raise or save money:

Raise money

You can raise money by releasing equity in your home and taking out a new mortgage that is larger than your existing one. You could do this to consolidate debts, make home improvements or fund something else in your life.

Save money

You could save money by remortgaging and switching to a cheaper mortgage provider. You will need to check the terms of your contract though to make sure you aren’t charged any early exit fees.

How could you improve your home?

 

If you can release equity in your property, you can use these funds to improve your home and potentially increase its value. You may be able to build an extension, make repairs or update a property to raise its market worth.

This could prove to be a sound investment in the long-term, but we’d advise you seek expert advice before deciding to borrow money against your home.

What are the risks of remortgaging?

When you remortgage for a larger amount than your property is worth, you are borrowing more money against your home. If you borrow money and do not keep up with the agreed repayments, your home could be at risk.

If you feel you cannot commit to higher repayments than you are already on, we’d advise you consider remortgaging to release equity with caution.

When shouldn’t you remortgage?

You should not remortgage if your existing mortgage debt is small or if your property’s value has dropped. If your repayment charge is large or if you have little/negative equity in your property, we’d also advise you steer clear of remortgaging, as this won’t benefit you in the long run and could put you at a financial detriment.

Get advice today

If you are looking for expert advice on remortgaging your property, contact our team today. We will be happy to help advise you on what you can do to release equity and switch mortgage provider.

We are experts in offering solutions to people with bad credit and can help you if you need a helping hand with your next move. Visit www.clever-mortgages.co.uk today.

A family smile and embrace after purchasing life insurance

We can help you remortgage even with bad credit

If you have bad credit and need to remortgage your home, then don’t worry as we should be able to help. We understand there can be lots of reasons for people having an impaired credit profile and will look into your circumstances to make sure you’re offered the most suitable solution.

A mortgage is not only the biggest financial commitment for most people, but also the biggest headache if it becomes difficult to make the monthly repayments. Remortgaging can be a great option if you’re reaching the end of your current terms and would like a better rate as part of a new deal – especially if you’re in debt.

Are you in debt and would like to remortgage?

There are many reasons for getting into debt, such as unemployment, ill health or the breakdown of a relationship. Getting behind with bills for one month can soon escalate into a much bigger problem if you start relying on credit to pay for household costs – which then leads to increased debt, higher monthly repayments and marks on your credit file if you get behind with your bills.

Bad credit is also a bit of a sweeping statement. The thing is missing just one payment, for example if you forget to pay a credit card one month or you don’t have enough money in your bank account for a direct debit to pay your mobile phone bill, can leave a mark on your credit file and lower your credit score. Did you know a missed credit card payment could affect your credit score for three years?

Bad credit can be a result of CCJs, mortgage defaults, IVAs or bills that have been paid late. You can even have a low credit score if you’re self-employed, with no proof of income, so you simply haven’t built up a credit history yet.

If you’d like to remortgage your home but have a low credit score, we’ll use our experience of the specialist lending industry to provide you with the most suitable solution based on your circumstances.

Bad credit remortgages

It’s not a problem if you’ve been turned down for a remortgage by a high street bank or lender as Clever work with a wide range of providers who can help people in many different and complex situations. We have access to lenders are able to assist with most credit profiles, whilst providing a high level of customer service and expert decisions you can count on.

We can help whether you’re self-employed, a contract worker, if your income is seasonal or you rely on extra part-time work or bonuses. No matter what your circumstances are, we’ll review your situation, affordability and advise on the most suitable remortgage solution for you.

Remortage deals even if you have bad credit

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

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

For every application our aim is to find a remortgage that suits your plans, and one that you can afford now and in the future. We can help even if you’ve had defaults on your credit file.

Clever Mortgages is your route to your new remortgage so make sure to talk to one of our friendly team today on 0800 197 0620.

A man writes on a notepad in a background with a doll house and piles of coins at the front of the image

What does the interest rate rise mean for you?

There’s been plenty in the news recently about interest rates rising for the first time in over 10 years. The Bank of England has raised the base rate from 0.25% to 0.5%. This means you could be paying roughly £200 more a year for every £100,000 you owe.

Why has the interest rate increased?

The rise in the base rate is an attempt to lower inflation. Inflation is the general increase in prices for goods and services. A higher interest rate often works to reduce inflation as it encourages people to save rather than spend.

What does the interest rate rise mean for your mortgage?

Fixed Rate Mortgages

If you are on a fixed-rate mortgage, nothing will change – for now. However, when the time comes to review your current mortgage deal, there’s a chance your mortgage payments will increase on a like-for-like product. Most fixed rate deals are either 2 or 5 years, so depending on when you started with your current product, you may have some time to consider your options. You can make use of a mortgage calculator to understand what your new repayments will be once your current deal comes to an end.

Variable Rate Mortgages

Those on a variable rate mortgage are at greatest risk of seeing an immediate increase in their monthly mortgage payments; this accounts for around half the mortgaged population. If you’re on a Tracker mortgage, you will definitely see an increase in your payments. As the name suggests, a tracker mortgage ‘tracks’ the base rate and therefore rises and falls with it.

If you’re on a variable rate, it could be time for you to review your mortgage. You can get in touch with an adviser or even start the mortgage application process to make sure you’re on the best deal for you.

What about my savings?

Whilst yes, you will earn more on your savings, don’t expect it to outweigh the increase in your mortgage payments. If you have £10,000 in a cash ISA, you could expect your annual interest to rise by around £25.

Should I do anything?

It may not be a bad idea to get mortgage advice, particularly if you’re on a variable rate mortgage, as there could be a better, cheaper product for you to switch to. Mortgage brokers are often your best port of call. Unlike if you went to an individual lender, they only review their own range of products to find you the best deal.

Clever Mortgages can explore much further. We review an extensive range of options from different lenders to find the one you’re most comfortable with, so you can be sure of staying happy in your home.