Navigating through the mortgage process can be complex, and remortgaging is no exception. There are 10 types of remortgages in Manchester, each catering to specific financial needs and circumstances.
To ensure you make informed decisions tailored to your unique situation, it is crucial to consult with a trusted mortgage broker in Manchester. With our expertise, we can guide you through the various remortgage types, helping you choose the most suitable option that suits your personal situation.
The main different types of remortgages are:
- Remortgage for a Better Deal – This involves actively seeking the most favourable interest rates in the hopes to achieve cost savings.
- Remortgage to Release Equity – With this type of remortgage, you can release tax-free equity from your home.
- Remortgage for Home Improvements in Manchester – Consider extending your mortgage to fund home improvements to your home or garden, such as a new kitchen, an extension, additional bedrooms, or other improvements.
- Debt Consolidation Remortgage – This is when you take your unsecured lending such as store cards, credit cards and personal loans and add them to your mortgage. Note, this is high risk, our mortgage broker Manchester team will be more than happy to discuss all the risks associated with this type of remortgage.
- Equity Release Remortgage (Age 55+) – With this type of lending aimed at peopled aged 55+, you can release equity from your home to supplement retirement income, complete home renovations, repay an existing mortgage, provide gifts to family, or anything else. If you already have a lifetime mortgage, our head of later life lending Dan Osman can also explore options such as borrowing more or refinancing it for a better deal.
- But to Let Remortgage – If you are a landlord who have a portfolio of properties in Manchester or surrounding areas and looking to remortgage a buy to let property, either for a better deal or to release equity, you can do this via a buy to let remortgage product.
- Remove a Name from a Mortgage – If you have recently separated or divorced, at remortgage time, providing that the person looking to take over the mortgage passes the lender checks, a name can be removed from the mortgage.
- Remortgage to Change the Term – You’ll have the option to reduce or extend your mortgage term at remortgage time depending on your personal situation.
- Remortgage Specialist Finance – There are more specialist remortgage types available such as a secured loan, house in multiple occupation (HMO) or commercial mortgage. More on these below.
How to know which remortgage type to go for?
Selecting the right type of remortgage is a decision contingent on your unique circumstances, goals, and circumstances. If you solely rely on your existing mortgage lender for a new deal, you might be overlooking potentially lower rates available elsewhere. Mortgage lenders tend to benefit when customers don’t shop around, leading them to default to higher standard variable rates.
Mortgage lenders often streamline the process for customers to secure a new deal through their online banking platforms. However, it is strongly advised not to proceed with this without consulting a mortgage broker in Manchester, such as our team, beforehand as search 1000’s of deals and find the options that’s right for you.
We specialise in assisting with various types of remortgages and can offer comprehensive support and guidance throughout the entire mortgage advice process. Your well-being is our priority, and we are dedicated to helping you make informed decisions tailored to your specific needs and aspirations.
Remortgage for a Better Deal
If your current fixed-rate deal is ending with less than six months remaining, its a good opportunity to secure a new mortgage deal. Our team can compare the different options available to you, including evaluating any product transfer mortgage deals you may be offered, saving you time and money.
Typically, your existing lender will propose a product transfer deal and then we’ll compare this to what is available elsewhere. It’s always usually cheaper for you to switch to a new lender.
Capital Raising Remortgage
When you remortgage to release equity in Manchester, you have the option to borrow additional funds for a variety of legitimate purposes. This includes, but is not limited to, making purchases, providing financial assistance to family members get onto the property ladder, acquiring a buy to let property, or consolidating debt.
Our service involves a thorough comparison of any additional advance mortgage offers presented by your current lender against those available from other lenders. Our goal is to identify the most favourable option tailored to your specific needs.
Bear in mind that a remortgage typically entails paying interest over an extended period. Therefore, it’s essential to ensure that the funds are borrowed for valid and prudent reasons. Making informed decisions about the reasons for borrowing is paramount, considering the long-term impact on your financial well-being.
Remortgage for Home Improvements
If you believe your home could use some upgrades, remortgaging for home improvements is a viable option. Investing in your home can prove to be a worthwhile investment, with certain improvements like extensions or loft conversions adding tangible value to your property. Over time, kitchens and bathrooms may appear dated, and remortgaging allows you to finance both cosmetic enhancements and structural modifications.
In cases where the borrowed amount is substantial, the lender may request estimates for the planned works. Importantly, you are not obligated to engage the contractor who provided the estimate to carry out the actual renovations.
Interestingly, some individuals opt to borrow for home improvements even when they don’t anticipate an immediate increase in the property’s value. This is particularly common for those who have decided they are in their “forever home.” If the financial capacity allows, there’s no drawback to borrowing for this purpose.
Debt Consolidation Remortgage
This remortgage type is a very specialist area of mortgage lending so if you are looking to consolidate debts it’s vital that you speak with one of our mortgage team asap. Doing a debt consolidation mortgage without a trustworthy mortgage broker on your side could result in you paying more interest and potentially losing your home.
When you add unsecured debt to your mortgage you may end up paying back more interest overall. This is because a mortgage term tends to be much longer than that of a personal loan (although it doesn’t have to be).
The other thing you need to think about is that you are taking unsecured debt and securing your home. That doesn’t sit easily with everyone as you are under the risk of repossession if you cannot afford your mortgage in the future.
You will need to know the interest rates that apply to the debts that you are considering rolling into your mortgage. If you have 0% credit cards, then adding these to your mortgage will start attracting interest.
You should consider all options before deciding to remortgage for debt consolidation, such as asking family members for assistance if possible and reducing as much non-essential expenditure as possible.
Once you have considered all of the above and decided a remortgage for debt consolidation could be right for you then it’s vital you speak with a mortgage advisor. The advisor will take responsibility for the recommended remortgage advice and help you with your application.
Often, consolidating debts into your mortgage leads to a reduction in your monthly outgoing. Some customers end up reducing their payments by hundreds of pounds.
Equity Release Remortgage (Age 55+)
We tend to find anyone, aged 55+, are often looking to remortgage to raise capital on their property. Reasons such as to supplement pension income, helping family, pay for a big purchase and to clear debts.
Already have an equity release plan in place, a remortgage on equity release in Manchester may be possible. Our late life lending team can look at refinancing these if more funds are required and getting you the best deal.
Mortgage lenders have been very innovating in this space over the last few years and lots of great products are now available to older homeowners looking to remortgage.
Whether you will qualify for a regular mortgage, a mortgage into retirement or an equity release plan will depend on various factors such as your age, income, and plans with the property. Head of later life lending Dan Osman, can explore all these different mortgage types with you.
Buy to Let Remortgage
Buy to let remortgages in Manchester include remortgaging for a better deal, capital raising or extending the term.
With a buy to let remortgage, the property value will be considered along with the rental income received. being a buy to let mortgage broker in Manchester, our team will guide you through the whole process.
Remove a Name from a Mortgage
If you have recently separated or divorced, at remortgage time, providing that the person looking to take over the mortgage passes the lender checks, a name can be removed from the mortgage.
Documents will be required by the person taking over the mortgage to prove income such as payslips and bank statements. Mortgage lending criteria will also need to be met.
As a trusted mortgage broker in Manchester, our team will help explore your options with this type of remortgage and let you know how much your new monthly repayments will be.
Often, when a client is removing a name from a mortgage, they look to raise some equity from the property to pay off the ex-partner. This can all be done at the same time with one transaction by our mortgage advice team.
Change the Term of your Mortgage
Our clients usually reduce or extend their mortgage term for three main reasons, the first is to reduce their monthly payments, the second is to get their mortgage paid off quicker, and the third is if their interest-only mortgage is ending soon.
All mortgage lenders will have different criteria when it comes to maximum age so it’s always best to do this with a mortgage broker like us, on your side. Here, we have a full range of later life lending mortgage product types available also.
There are risks and alternative product available so it’s important seek mortgage advice to explore all your options.
Remortgage a Specialist Finance Product
You are also able to refinance other lending products such as a secured loan, house in multiple occupation (HMO) or commercial mortgage.
These products are classed as specialist finance so it’s always best to speak with a reputable mortgage advisor, like us, to save you time and money.
Date Last Edited: November 8, 2024
