


Homeowners often mis-use the expression remortgage when they are simply switching from one product to another with the same lender; this is not a remortgage which involves the removal of one legal charge over a property and its substitution with another in favour of a new lender.
A remortgage is the process of paying off one mortgage with the proceeds from a new mortgage using the same property as security. The process of remortgaging does not usually involve moving home or taking out a second mortgage on the property; it is in effect the transfer of a mortgage from one lender to another. Homeowners may choose to remortgage for various reasons, including to reduce the size of repayments, to pay off a mortgage earlier, to raise capital, or to consolidate other debts.
As competition between mortgage lenders has grown, you may now be able to take advantage of a better remortgage deal and save money - by remortgaging with us. Here at Fresh Finance Group, our expert advisers with many years of experience try to find the best remortgage deal for our valuable customers. We also advise our customers whether it's a best option to look for a remortgage or other financial services we offer depending on the customer's situation and requirements.
So, let our mortgage & remortgage advisers take the stress out of remortgaging and secure your low rate remortgage today. Remortgaging in UK has never been easier and we are here to help you every single step through out the whole process. With our knowledge of the market and excellent relationships with the lenders, Fresh Finance Group is a quick and straightforward route to the most suitable remortgage deals in the UK for your circumstances.
Re-mortgaging to pay off other debts must be carefully considered, it will usually mean more interest over a longer repayment term and there may also be early repayment penalties on your current mortgage, you should think carefully before securing other debts against your home. There may be other ways to raise capital that are more suitable to you. Your adviser will recommend the most suitable product for your needs.
Is it worth remortgaging?
Homeowners with fixed rate mortgages should get organised well before their rate ends - or potentially find themselves paying hundreds of pounds more than they need to, recent customer experiences show. Banks or building societies may be too busy to remind customers that their rate is up.
The cost of switching mortgages to a new provider, or even moving mortgages with the same one, has shot up in the last couple of years as providers have increased set-up fees considerably, and this can offset the benefits.
You should always work out the total cost (including arrangement, legal and valuation fees, if they apply) and compare it with the repayment savings you can make.
For example, a borrower with a ã150,000 mortgage would pay ã3,000 a year less in interest by switching from a standard variable rate of 7% to a lower two-year fixed rate of 5%. Even taking a one-off arrangement fee and other costs of ã1,200 into account they would still save ã1,800 a year.
Top tips
a) Read the small print. Check that your existing mortgage does not have an exit penalty if you switch. These charges
need to be taken into account when weighing up the advantages of remortgaging.
b) Seek independent advice from a mortgage or a remortgage broker. The internet can be helpful for those who want to do their own research and seek out best buy deals but a broker can also save time and search out top rates.
c) Speak to your existing lender. Tell your lender you are considering remortgaging and ask what deals it can offer. Some banks and building societies will offer good deals to get customers to stay rather than switching away. Retention mortgage products can be good value when the extra costs associated with remortgaging to another lender are taken into account.
d) Fee-free deals may not be as attractive as they first seem. Often with fee-free mortgage offers the fees have simply been costed into the interest rate you pay, so over the term of the deal they may not work out any cheaper. Do your sums before you switch.
Debt consolidation is not always the most suitable option, consolidating debts must be carefully considered. It will usually mean more interest over a longer repayment term and there may also be early repayment penalties on your current mortgage, you should think carefully before securing other debts against your home. There are other ways to manage debt such as free debt advice charities, you can find out more by contacting the Money Advice Service https://www.moneyadviceservice.org.uk/en/tools/debt-advice-locator these services may be more suitable for you.
Related Links
- Offset & Flexible Mortgages
- Debt Consolidation
- Secured Loans
- Unsecured Loans
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THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT.
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