Remortgages: Tailor made remortgage solutions to suit you!
Are you looking for a Remortgage? Want to know more about Remortgages and whether a Remortgage is the right option for you? If so, you're in the right place!
Shire Direct can arrange tailor made remortgage solutions to suit you, even in the trickiest of circumstances - we have the skills, expertise, experience and the approach necessary to find just the right remortgage product for you, even if you have suffered from credit problems such as CCJ's, Arrears, or credit defaults.
Let's take a closer look at Remortgages, and when and why it might be a good idea to remortgage, as well as the potential downsides to remortgages. We'll also take a look at the tailor made Remortgage solutions Shire Direct can provide...
Remortgages and Remortgage solutions:
Table of contents:
Remortgages: Switching mortgage products...
As the mortgage marketplace has become increasingly sophisticated over recent years, more and more borrowers are eager to switch their mortgage products to get a better deal. The deal may be to improve the interest rate for a certain period, or maybe the borrower wants to fix their interest. Sometimes the desire to change mortgages is to increase the features of their mortgage with a product that is flexible in nature!
Many borrowers will combine the opportunity of switching their mortgage to raise additional funds for a particular project, the most common of which is to refinance their debt, or to undertake home improvements, or a combination of both. Remortgaging your home can be substantially beneficial, provided of course that the motive for doing so is prudent, and that you're not simply jumping out of the frying pan into the fire!
The process of switching your mortgage is, generally speaking, a straightforward task. Remortgaging is merely a paper transaction - it's the act of replacing your present mortgage with an entirely new loan with a different lender. You don't have to move house to move your mortgage!
Why Remortgage?
As we've seen there's a whole raft of reasons to remortgage, and the main reasons include:
- To save money
by switching to a more competitive interest rate.
- To get a special product or preferential interest rate.
For example, when switching your mortgage, you may prefer to have a more complex type of scheme that fits in with your own needs and requirements, such as a flexible mortgage product. This type of scheme incorporates many features including the facility to drawdown additional borrowings to a predetermined borrowing level, as well as making overpayments or underpayments into the account. Alternatively you can switch your mortgage and receive a Cashback of up to 10% of the amount borrowed. You may prefer to have security of stable payments by fixing your mortgage, or you may prefer to receive a discount rate from the lender's Standard Variable Rate (SVR).
- To refinance by consolidating existing debt.
Lots of people these days succumb to buying more and more on credit. It used to be to keep with the Jones's! Nowadays, it's more likely to keep up with technology and to have the latest TV, audio, computer, and kitchen equipment.
Whatever the reason, our family budgets are becoming increasingly unsustainable because as interest rates are moving upwards, the amount of credit we have in relation to our disposable income gets ever narrower. So it can make sense to replace the expensive debt we have on credit cards, store cards, personal loans etc. especially when you can spread the cost by consolidating them all into one manageable monthly repayment with a remortgage.
- To improve your property and your lifestyle!
If you have more children than bedrooms, it's often less expensive to extend your existing property rather than upping sticks and moving! So, if you love your house, your neighbours and the area where you live, a remortgage could provide the additional funds you need to give your home a face-lift - another room or rooms, conservatory, a new fitted kitchen or replacement windows. Why not take a look at our 'Financial Help for Home Improvements' mortgage glossary page for more information.
- To guarantee your mortgage is repaid at the end of the mortgage term by switching to a capital repayment basis.
If you're worried that your endowment policy isn't going to repay your mortgage at the end of the term, it may be a good idea to consider switching to a capital repayment mortgage, and at the same time, take advantage of a different mortgage product, such as a fixed or discount rate, or maybe an offset mortgage product where your current and savings accounts can help to reduce the interest you repay, and thereby shortens the time taken to repay your mortgage!
What about the downsides to remortgages?
It's OK to get excited about the prospects and benefits of remortgages. However, it is important that you also carefully take into account the disadvantages that could apply, including:
- You may incur Early Repayment Charges (ERC's)
If you're currently in a mortgage tie-in period, there's a good chance that you may have to pay Early Repayment Charges if you settle your account before the end of the tie-in or lock-in period.
- If you are consolidating debt, you are likely to pay more interest by extending the borrowing term.
Although borrowing money against the security of your home will usually be at a cheaper rate of interest than interest rates charged on credit and store cards, HP etc., by extending the term of your borrowing on the remortgage, you are likely to repay more in interest over the new term than you would have done if you had paid your borrowings over the initial period.
Furthermore, as you are using your home as security for your remortgage, you will be converting the consolidated debt from unsecured borrowing to secured borrowing. This means that in the event you are unable to make your repayments, your home could be repossessed as a result.
- Other costs and fees may be payable.
If you do remortgage, you will normally have to repay the new lender an application or product fee. Additionally the lender will usually require a valuation, and you will normally incur solicitors and broker fees.
Remortgages and remortgage help from Shire Direct...
So if you can tick any of these boxes...
A remortgage could be an appropriate financial solution for you!
- You would like to reduce your monthly outlay
- You would like to raise capital for any purpose
- You would like to have the peace of mind of fixed mortgage payments
- You would like to better your interest rate
- You have more children than bedrooms
- You would like to extend your property
- You want to carry our some home improvements
- or simply, you would just like to get rid of your nagging bank manager, and make a fresh start!
...just give us a call, or enquire online for a tailor made remortgage solution for you!
A chat with one of our professionally qualified mortgage advisors will soon put you in the picture. They will carefully assess your circumstances, needs and aspirations, and examine the various options that are available to you. Rest assured, we'll come up with just the right remortgage solution for you! Our Freephone line 08000 282 281 is open until 10.00pm daily, including the weekends, the call is free and without obligation, and we'd love to hear from you! Alternatively, you might prefer to enquire online at any time instead.
The overall cost for comparison is 9.8% APR.
The actual rate available will depend upon your circumstances. Ask for a personalised illustration. APR variable and based on a usual case. Most customers are likely to receive a lower rate or the same rate as our overall cost for comparison rate - learn more about APR.
There are no upfront broker fees.
However, a fee may be charged on successful completion. An indication is that on conforming cases (straightforward applications with no or minimal adverse credit) a fee may be charged of up to 1% of the amount advanced, typically £795 and will depend on your circumstances.
For non-conforming cases (where case research and processing may be more complex due to adverse credit or unusual circumstances), a fee may be charged of up to 3% of the amount advanced, typically £1,995.
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.
Adding existing debt to your mortgage will increase the repayment term and overall cost.
