Whether you’ve just bought your first home in Manchester or have been living there for a while, understanding remortgaging is key.
It involves either moving your mortgage to a new lender or renegotiating terms with your current one. To make the right decisions for your unique situation, it’s important to speak with a trusted mortgage broker in Manchester.
We’ll guide you through the different types of remortgages, helping you choose the best option for your needs.
What is a Remortgage in Manchester?
Let’s break down remortgages in Manchester. It’s about shifting your existing mortgage or adjusting terms. People consider it for various reasons, like getting a better interest rate, releasing equity, or adapting to changing financial circumstances.
With the support of our reliable mortgage broker in Manchester, you’ll gain clarity and confidence in selecting the best option tailored to your needs.
How important is a mortgage review?
Regularly reviewing your mortgage is a smart move that could save you money. It’s not just about rates; it’s also an opportunity to reassess your mortgage term.
Our mortgage brokers in Manchester can provide the service of remortgaging, exploring options like staying with your current lender through a product transfer. It’s about ensuring your mortgage fits your current financial goals.
Learn More in our article “Does your mortgage need a review?“
Will I be offered a remortgage in Manchester by my current provider?
Wondering if your current lender will offer you a remortgage in Manchester? They might suggest a new deal, known as a “product transfer”. While it seems simple, exploring other lenders could unveil more attractive benefits.
Our mortgage broker in Manchester is here to guide you, ensuring you make informed decisions for your future financial landscape.
What is product transfer in Manchester?
As your initial mortgage deal ends, your lender may suggest a product transfer to keep your business. But remember, you’re not obliged to accept.
You can explore other options with different lenders, potentially finding better deals. Your mortgage broker in Manchester is your trusted ally, offering expert guidance to help you make choices aligned with your future goals.
Learn more in our article “Product Transfer V Remortgage“
Tempted by an online switch?
While the process of switching from your existing mortgage deal to a new one with your current lender may seem straightforward online, we strongly advise exploring other available deals.
Lenders may encourage customers to opt for a new deal online without seeking professional mortgage advice, potentially missing out on better options and valuable consumer protection.
Choosing a new deal online without professional advice means forgoing the insights and tailored guidance a mortgage advisor in Manchester can provide. It’s important to avoid rushing into such decisions.
Take a step back, assess all your options, and speak with a trusted mortgage broker in Manchester to make informed decisions tailored to your unique situation.
Every customer reaching out for mortgage advice in Manchester benefits from a free mortgage appointment. Once we have your information, we connect you with a dedicated mortgage advisor in Manchester, guiding you through all your mortgage options.
Our aim is to help you secure the most appropriate deal based on your personal and financial circumstances, ensuring you understand the implications of your choices.
What are the main reasons to consider a remortgage in Manchester?
Now that we understand what remortgage means, let’s delve into why people consider remortgaging in Manchester.
Avoid Lender’s Standard Variable Rate (SVR)
Approaching the end of your fixed mortgage term without remortgaging means transitioning to your lender’s standard variable rate of interest (SVR), likely higher than your current rate.
Remortgaging involves securing a new product, avoiding the shift to the lender’s SVR and potential increased monthly repayments. It’s a strategic move to maintain financial stability and flexibility.
Lower Interest Rates
Searching for a new remortgage product is more than just finding better interest rates; it’s about tailoring your mortgage to your evolving financial goals.
Our role as your mortgage broker in Manchester goes beyond searching for deals; we work to understand your financial aspirations and find a product that aligns with your long-term objectives, ensuring you save both time and money.
Repayment Flexibility
Remortgaging allows modification of your mortgage repayment structure, making payments more manageable. This might involve switching the type of mortgage or adjusting the term.
Our mortgage advisors in Manchester work closely with you to understand your financial goals and tailor the remortgage solution to your unique situation, offering guidance on how these modifications impact your overall financial plan.
Home Improvements
Planning home improvements? Remortgaging can help incorporate improvement costs into your mortgage, providing a streamlined approach to financing your projects.
Our expert mortgage advisors in Manchester help in navigating the complexities of adding improvement costs to your mortgage, ensuring a clear understanding of the implications and helping you make informed decisions about your property.
Debt Consolidation
If you have accumulated debt, remortgaging to consolidate it into your mortgage may make repayments more manageable. Always speak with an expert mortgage advisor in Manchester before consolidating debt into your mortgage, exploring alternative options first.
Our team provides comprehensive debt consolidation advice, guiding you through the potential impact on your mortgage and overall financial health.
Accessing Equity
Property values tend to increase over time. Remortgaging may allow you to access this extra equity in your home, using the cash for various purposes.
Our mortgage experts in Manchester analyse the market trends, property values, and equity potential, ensuring you make informed decisions about leveraging your property’s value for your financial goals.
What is a loan to value and why do people remortgage for a better one?
Loan to value (LTV) is the ratio of the mortgage to property value, represented as a percentage. Lower LTV mortgages, typically below 60%, offer more favourable deals as they pose less risk to lenders.
As your property value increases and mortgage balance decreases, your LTV improves, granting access to better mortgage rates. Our mortgage advisors in Manchester provide in-depth explanations of LTV, ensuring you understand how it impacts your mortgage options and overall financial picture.
Are there any benefits to remortgaging in Manchester?
Remortgaging during a fixed-rate period can offer advantages beyond securing a lower interest rate. It’s an opportunity to reassess and tailor your mortgage terms to align with evolving financial goals.
Additionally, tapping into accrued equity during a fixed-rate period can address various financial needs, making remortgaging in Manchester a strategic move.
Our dedicated team of mortgage advisors ensures you have a clear understanding of the potential benefits and implications, empowering you to make sound financial decisions.
Can I remortgage early if the value of my home has increased?
The decision to remortgage early hinges on your mortgage term progress. Remortgaging before the term completion may trigger an early repayment charge (ERC) due to breaking the initial contract. The critical consideration is whether the potential benefits outweigh the ERC.
For instance, during the COVID-19 pandemic, the Bank of England’s rate drop created an opportunity to secure a better rate through early remortgaging, offsetting the ERC in long-term savings.
While this example is unique, it underscores the potential advantages. Speaking to our expert remortgage advisors in Manchester ensures you make well-informed decisions aligned with your financial goals.
Learn more in our article “Remortgaging in Manchester When Your House Value Has Increased“
Do I need a remortgage in Manchester to remove a name from a mortgage?
From the lender’s perspective, retaining joint mortgage holders provides security in case of financial challenges. They prefer two parties for potential financial compensation in scenarios like mortgage arrears or repossession.
If one party seeks removal from the mortgage, it triggers affordability checks to ensure solo repayment capacity. The process varies among lenders, and seeking help from a trusted mortgage broker in Manchester can be beneficial.
Switching lenders for a better mortgage deal during this process may ease complications, and our specialist advice in Manchester is available for a free initial mortgage appointment.
Learn more in our article “How do I Remove a Person From a Mortgage in Manchester?“
Can I borrow more money for home improvements?
Subject to affordability checks and sufficient property equity, increasing your mortgage for home improvements is viable.
This strategic move not only updates your home but also enhances its value. Customers often use this approach for kitchen renovations, home office creation, or loft conversions. Strategic planning and professional guidance are key in executing this wisely.
Speaking with a mortgage advisor in Manchester ensures you make informed decisions that align with your financial goals and property’s potential.
Can I borrow more money to fund other means?
Borrowing extra funds through your mortgage can serve various purposes, such as debt consolidation, property investment (e.g., Buy to Let), consumer purchases, or gifting to relatives. This flexibility allows you to leverage your property’s value for diverse financial goals.
However, seeking guidance from a mortgage advisor in Manchester helps navigate the complexities and choose the most suitable options aligned with your unique circumstances.
Should I remortgage in Manchester or move home?
Moving home in Manchester is an option worth considering, especially if it meets your needs for a larger space or a home office. However, the associated costs, including removal fees, property survey fees, and mortgage arrangement fees, need careful consideration.
Remortgaging for a home office without moving, presents a cost-effective alternative. Seeking remortgage advice in Manchester at this juncture allows you to explore the best options tailored to your needs.
When should you speak with a mortgage broker in Manchester?
Remortgaging for home improvements often involves releasing equity within your property. This can be a wise choice to fund updates and enhance your property’s value.
The remortgage process, facilitated by a dedicated remortgage advisor in Manchester, tends to be smoother and quicker, ensuring a hassle-free experience.
At Manchestermoneyman, our mortgage advisors in Manchester are dedicated to helping customers throughout the day.
Whether you’re considering remortgaging for home improvements or evaluating the pros and cons of moving home, our advisors are ready to address your queries and provide comprehensive guidance.
Date Last Edited: November 8, 2024
