In Debt? Bad Credit History? Is a remortgage right for you? Call for sensible, friendly, jargon-free Remortgage options? Call our debt advisors for help NOW!
If you are in debt, remortgaging your house could be the lifeline you’re looking for.
It could help you reduce your monthly payments or allow you to consolidate your debts but it's vital that you get the right remortgage advice. And that’s where Simple Debt Solutions can help.
Our fully trained debt advice team are available 9.00am until 9.00pm 7 days a week on 0800 389 5959. They’ll listen to your debt problems with a sympathetic ear and will be able to give you access to a select number of authorised remortgage specialists who operate the same ethical code of conduct as ourselves. With your agreement, we’ll pass your details onto one of these companies who will be able to offer you the professional advice you need.
What is a remortgage?When you choose to remortgage your property, you are simply switching your mortgage to another deal and another mortgage lender.
People choose to remortgage for lots of different reasons. Some of the most common are:
1) Their current mortgage terms have expired and are looking for a better remortgage interest rate which will reduce their monthly payment.
2) By remortgaging they can consolidate any outstanding debts that they may have. Whilst this can make their budgeting easier it can, in the long-term, increase the amount of interest paid.
3) Remortgaging allows people to release some capital in their property to fund home improvements or other large capital expenditure.
Why remortgage?These days most mortgage deals are set for a certain period of time, typically this will be 2 to 5 years. When the terms come to an end, mortgage holders will have to choose a new mortgage deal or their mortgage will automatically revert to the mortgage lender’s standard variable rate. This is usually considerably higher than any new deals that are on offer and it is usually adviseable to look at new terms. However, even greater savings can sometimes be achieved by changing lenders altogether as most lenders will offer more attractive terms to new clients than they will to their current customers. This process is called remortgaging.
How do I find the best deal?As with most things in life, it is always important to shop around to find the best deals. But this can be extremely difficult with mortgages as there are so many lenders offering terms and most of these lenders are not even represented on the high street! Whilst internet search engines can provide an insight in to the market, it is always advisable to use a reputable mortgage broker who can tailor your requirements to the best deals available in the market place by using specialist sourcing software that is not available to the general public. You are free to find your own mortgage broker or alternatively we can give you access to a select number of authorised remortgage specialists.
What are the cost involved?Even though the mortgage market has reduced in size considerably over the last 12 months, there are still a vast number of lenders and mortgage deals available in the market place. The overall costs that are incurred in a remortgage will vary dramatically depending on your circumstances. It is the broker’s responsibility to find you the most suitably priced product in the market place based on your current personal circumstances. All costs and whether or not anything will need to be paid up front will be fully discussed with you. In most cases, there will be no initial fees involved and the only cost will be a little time in speaking to a broker.
Will my current lender charge me for leaving? If your current mortgage terms have come to an end there is normally no penalty to move away from your existing lender. Every mortgage deal on the market will have a set date when the terms finish and you are normally free to move without penalty. It is always advisable to look at the literature given to you by your lender to confirm what this date is. If there is any doubt speak to the lender directly so that no penalties are incurred. If you are still tied into your lender it is not uncommon to see a penalty of around 5% or 6% levied and this can equate to a sizeable sum and as such care needs to be exercised.
Any reputable mortgage broker will look at this area very carefully to ensure that no penalties are incurred. Furthermore, most lenders do charge a small fee, usually around £200, to closedown your mortgage, the settlement fee will be added to the outstanding mortgage amount and absorbed in the new borrowing.
For what purpose can I remortgage? You are free to remortgage for any legal purpose, for example:
1) Home improvements.
2) Second home.
3) Holiday home.
4) Car purchase.
5) Paying off debts.
6) Avoiding bankruptcy/IVA.
7) Avoiding repossession.
8) Divorce settlement.
9) Or any combination of the above.
What is the average timescale for a remortgage to be arranged?
This depends very much on your circumstances and the purpose of the mortgage. However, a period of up to 28 days is the average timescale but this can vary.
Do I need to have insurance in place to get a mortgage?
The only type of insurance that will be compulsory for a mortgage is buildings insurance. Any lender will want to ensure that the property that is mortgaged is fully insured against fire and potential damage. Additional insurances such as life cover and mortgage repayment protector are always advisable and the mortgage broker / financial adviser will discuss this with you on a one-to-one basis.
I have decided to remortgage what do I need to do?
Your broker will guide you carefully through the process and should assist you with the necessary form filling. Do not be worried about having to fill in reams of paperwork as this will be done on your behalf. You will also be informed of what additional paperwork is needed to support the application. This does vary widely depending on circumstances but is not as daunting as first might be thought.
Are there any disadvantages of remortgaging?
Each and every case is different, however there are always pros and cons associated with any transaction you undertake. When looking to consolidate existing debt it is important to remember that in doing so you are turning short-term unsecured debts (credit cards and personal loans) into a long-term secured debt which is obviously secured on your house. If you get into financial problems in the future and this affects your ability to make your mortgage repayments your home could be at risk from repossession. Furthermore then usual proposed term of a mortgage is usually much longer than a personal loan and by taking unsecured borrowings over a life of the mortgage can mean you pay back more in the long run.
Remortgage – Some points to remember1) Always shop around to find the best rates – you may find that it’s not always the bigger lenders that offer the best deals. And remember that remortgage offers change all the time so keep looking!
2) Some Internet sites and national newspapers often publish best “buy tables”of mortgages - these can be a useful information resource.
Remember your mortgage is a debt, so before remortgaging please seek advice from our debt advice team. They will listen to your individual circumstances and, if a remortgage is right for you, they will ensure you get the best advice. Call us now on 0800 389 5959.