Remortgaging Guide
What is a remortgage?
A remortgage (also known as refinancing) is the process of paying off one mortgage with the proceeds from a new mortgage using the same property as security. Often the purpose of switching is to secure a more favorable interest rate from a different lender.
Why remortgage?
If your current low rate deal is coming to an end, there's a good chance that your payments are likely to rise to your lenders Standard Variable Rate (SVR) which could increase your monthly repayments significantly. For example if you have a typical repayment mortgage of around £130,000 and you've been paying an average rate 5.5% your monthly repayments on a typical 25 year term, the monthly payment will be around £807. If your current deal is ending you will probably go straight onto your lenders SVR which typically could be around 2% more than the deal you've been on, making your new monthly payment £971 per month. That's a whopping £164 per month or nearly £2000 per year.
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.
Should I remortgage?
If your one of the thousands with your current lower rate deal ending then the answer is YES. Remember, you don't have to pay lenders expensive SVR's. There's probably a great deal out there waiting for you but how do you find the right one for you.
How do find the best remortgage?
There are thousands of mortgages available on the market today from a host of different lenders. Finding the right one that best suits your circumstances could be a potential nightmare so make sure your getting the best deal by contacting North Mortgages today and one of our qualified brokers will take the hassle out of remortgaging and will guarantee your getting the best deal for you. Remember we are whole of market so have access to thousands of mortgages.
At North Mortgages our Mortgage Experts will take care of everything on your behalf. Remember, we source mortgages from the whole of the market, so you know your getting the best deals available and all tailored to suit your personal circumstances.
Call NOW on: 08000 949 595 or contact us today to arrange a Call Back.
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