Remortgage




You can remortgage for a better rate, to consolidate debts or to release equity in your home which you can use for any purpose.

Remortgages are available with variable, fixed, capped or tracker rates, please speak to a mortgage adviser for more information.

As well as those in regular employment with a good credit history, many lenders will also accept those with non standard employment eg contractors or those with multiple jobs or those whose income consists largely of bonuses or commission etc.

Specialist remortgage lenders are also able to help those with a bad credit history for example, county court judgements (ccj), mortgage arrears, ex-bankrupts and those with IVA.

Please click here to read about remortgaging.

Please click here to read about the different mortgage products available.

A remortgage is simply the act of paying off your current mortgage and taking out a new one. Many people do not realise that they are able to do this, and so are losing out on the great low interest rates which are available at the moment.

You may have seen many advertisements from lenders encouraging you to remortgage, with incentives such as cash backs, free valuation, payments towards legal expenses etc. This is an indication of the fierce competition amongst lenders for your business. However, please be aware that if there is any imminent danger of redundancy, you are likely to be far better off staying with your current lender who will take a sympathetic view where you have a previously clean payment record.

Getting a remortgage is a good way to reorganise your finances. For example, when you originally bought your home you may have taken out a 95% loan. In the years since doing this, with the rise in house values, the amount you now need may be significantly less, for example you may now only need to borrow 75% of the value. Re-mortgaging would mean paying the lenderís 75% rate as opposed to the 95% one. If you took out your original mortgage as interest only backed by an endowment, you may consider moving to a repayment remortgage which would guarantee paying off the mortgage at the end of the term. You could then cash in the endowment and use it for buying a car, home improvements or an etc holiday etc, or you could continue paying into it and get a nice lump sum when it matures.

When remortgaging, in times of rising property values a debt consolidation mortgage is popular. This involves getting a remortgage for the original amount plus some of the equity and using the extra money to pay off loans and credit cards which are charged at a higher rate than your home loan.

If you took out your mortgage before October 2nd, 1995, then if you are made redundant or are forced to give up work because you are of ill health or accident, the government will pay nothing for the first 2 months, then 50% of your mortgage interest payments until you have been out of work for a further 4 months, then the whole amount, at a standard rate.

If you choose to remortgage, you will be treated as a new borrower, which means that if you lose your income, the government will pay nothing for the first 9 months, and then interest will only be paid at a standard rate set by the Department of Social Security. If your own interest rate is higher, you will have to make up the difference from your own pocket.

However, the good news is that there are now a number of excellent payment protection policies in the market which pay out during the first 9 months of accident, sickness or unemployment.

You would be well advised to take out such insurance when getting a remortgage, when it is easy to obtain cover as the insurance companies are happy that someone would not be looking to remortgage if there was any danger of redundancy.

Please click here to read about mortgage payment protection insurance.