If you’re looking to remortgage to take advantage of better interest rates or to release equity from your property, it’s essential to compare lenders to ensure you receive the best possible rate. Heritage Financial can save you time and effort by managing the process and seeking out the best remortgage deals.
Are you coming to the end of your existing mortgage term and concerned about rising interest rates and the effect on your monthly mortgage payments? With 74% of UK homeowners on fixed rates mortgages, you certainly aren’t alone!
Fortunately, Heritage is here to help you navigate the market and find the best remortgage deal for your circumstances.
Welcome to Heritage Financial Planning, remortgage brokers
We are a firm of independent mortgage advisers offering impartial advice on all kinds of mortgages, including remortgages. We are the local broker for Mold, North Wales, although we are happy to be able to extend our services nationally.
Our team of expert mortgage brokers are here to answer all of your questions, guide you through the process, and secure the best mortgage deal possible. Whether you are looking to release equity from your home to fund improvements or looking to reduce your monthly payments, we can help.
As independent brokers, we have access to a wide range of mortgage deals, including those from specialist lenders. Contact us to speak to one of our friendly and knowledgeable mortgage brokers today.
What are the reasons for remortgaging?
A full remortgage is when you apply for a new mortgage with a different lender but remain in your existing property. If you remortgage with your current lender, this is often referred to as a ‘rate switch’ or ‘product transfer’.
Here are the top two reasons most people seek to remortgage their home:
Coming to the end of your current mortgage term
The most common reason for remortgaging is coming to the end of your initial deal. The initial term (for both variable and fixed rates) is typically 2-5 years but can be as long as 10 years.
At the end of your initial term, your mortgage will automatically revert to your lender’s Standard Variable Rate. This rate is usually much higher than other remortgage deals, so by remortgaging before your current mortgage offer expires (or shortly after), you could save a significant amount of money.
Releasing equity from your home
If your home has appreciated in value or you have naturally reduced the debt of your mortgage, you may have more equity in your home. Many people will look to capitalise on this by releasing some of this equity.
Common reasons for doing this include:
- To make home improvements.
- To buy an additional property, such as a rental.
- To consolidate debts in order to reduce monthly repayments (particularly if those are credit card debts with steep interest rates).
Why not stay with my existing lender?
There’s no need to take any action at the end of your existing mortgage term, you will automatically revert to your lender’s SVR. Although, in our experience, we are confident that we can secure a lower rate, potentially saving you thousands of pounds.
It is possible to negotiate a remortgage with your existing lender, which is known as a ‘product transfer’. However, if you don’t look at the entirety of mortgage lenders on the market, you could miss out on a lower rate.
Our remortgage process
You can usually remortgage up to 3-6 months before your current deal expires. So we recommend contacting us then to allow time for the mortgage application process and to ensure you don’t end up on your current lender’s STV.
We will take the time to understand your financial situation and gather your personal information. Although it can be a lengthy process, one of our helpful mortgage brokers will take care of the application on your behalf.
Assuming your application is successful, you can ‘lock in’ the rate on the new mortgage application in case mortgage rates increase before completion. If rates fall before your mortgage completes, it may be possible to switch to a lower rate. Other brokers do not always offer this service, which is one of the advantages of working with Heritage.
Are there any disadvantages to remortgaging?
You may incur penalties
If you are thinking of remortgaging before your current mortgage expires to secure a better rate, you could incur significant Early Redemption Charges. It is important to make precise calculations to determine if the lower rate compensates for the penalty. Our mortgage advisers will always do this before making a recommendation.
You may not be approved if your circumstances have changed
If you remortgage with a new lender, you will have to make a new application and go through various checks and underwriting. If your circumstances have changed, for example, you are no longer working, or you have experienced bad credit, it could affect your chances of being approved.
Increased monthly payments and risk
If you borrow more, for whatever reason, then your monthly repayments will increase. It’s also important to consider that if you remortgage to consolidate other unsecured debts, such as credit cards, then those debts will be secured against your home. So, in a worst-case scenario, you could lose your home if you fail to keep up with the monthly repayments.
Why choose Heritage Financial Planning for your remortgage?
Heritage Financial Planning is an expert mortgage broker with years of experience in helping people to remortgage. We are independent and here to offer impartial mortgage advice to with your best interests in mind.
Your friendly and helpful mortgage adviser will be with you throughout the entire process, saving you valuable time and hassle. Plus, you can enjoy peace of mind, knowing that you are switching to the best mortgage rates available to you.
Contact us today to arrange a free initial consultation
Frequently asked questions about using a broker to remortgage
Can I switch mortgage brokers when remortgaging?
Mortgage brokers are the link between you and the lender, not the lender itself. So you are certainly not restricted to working with the same mortgage brokers that you used for your current mortgage.
Why should I use a mortgage broker?
If you look to just remortgage with your current lender, naturally, they will only offer their own products. Independent mortgage brokers like Heritage have access to the whole of the market and thousands of mortgage products, some of which may not be available directly to you as a borrower.
As a reputable broker, we always consider the current lender’s rate and compare it to the wider mortgage market to secure you the most competitive remortgage deal possible.