If you have just bought your first home in Manchester and your current mortgage deal is ongoing, you may not have heard of a remortgage before. On the other hand, if you have been living in your property for a long period of time, you may have a rough idea of what remortgage means and when the point of remortgage is.
Remortgaging, also known as financing, is simply the process of taking out a new mortgage deal with a new lender to replace your current product. Usually, a remortgage takes place when your current deal is coming to an end.
Let’s take a look at the main parts of a remortgage and how the process works.
When you remortgage in Manchester, you will be taking out a product with a new lender. Taking out a new product with a different lender could help you potentially open yourself up to products with better interest rates. As a mortgage broker in Manchester, we also see that homeowners remortgage in Manchester for better customer service, more favourable mortgage terms and excess specialist products that their current mortgage lender does not offer.
If you are happy with your current mortgage but want to slightly alter the terms of the product, remortgage is an option. Remortgaging could allow you to extend or shorten your mortgage term or even change products completely, such as a switch from a fixed rate to a variable rate!
For those looking to take money out of their home, remortgaging to release equity is a viable option. If your current lender is not letting you take equity out of your home through a remortgage, other mortgage lenders may allow you to do so. There are many specialist lenders out there that offer products that can allow you to do this. Our team at Manchestermoneyman will be more than happy to help you explore equity release in Manchester and look at your options with you.
Now that you know what a remortgage means, let’s look at some reasons why people will want to remortgage in Manchester.
When you are approaching the end of your fixed mortgage term, if you do not remortgage, you will fall onto your mortgage lender’s standard variable rate of interest (SVR). It is more than likely that this rate is much higher than the current rate you have been paying. When you remortgage, you are taking out a new product and will avoid falling onto the lender’s SVR.
Linking with the reason above, searching around for a new remortgage product could allow you to access better rates of interest. In turn, this would reduce your monthly mortgage repayments.
As a mortgage broker in Manchester, it is our job to help you find the perfect remortgage product for your personal and financial situation. We will always try and save you time and money where we can!
Remortgaging can allow you to modify your mortgage repayment structure. Homeowners do this to make their payments more manageable. This could mean switching the type of mortgage they have on their property or shortening/extending their mortgage term.
If you feel as if your home could do with some improvements, you may be able to incorporate some of the costs of these improvements into your mortgage. This is done via a remortgage for home improvements. The way that this works is that you would add the costs of the works to your total mortgage amount and then your monthly repayments will go up each month to accommodate the costs of the works. Depending on the work you’ve done, your payments may only rise by an extra £30 or £50.
If you have built up debt, such as credit card balances or personal loans, you may be able to remortgage to consolidate this debt into your mortgage. It could make paying off your debt a little more manageable. We would always recommend speaking with an expert mortgage advisor in Manchester before consolidating debt into your mortgage, there are other options to explore first before doing this.
Your property value will likely increase over time. Remortgaging may allow you to access this extra equity in your home. Equity is essentially just how much money you have put into your home/mortgage, and you can withdraw a portion of this equity and use the cash as you like! We see that people use the money for all sorts of things, such as buying a new car or booking a holiday.
Remortgaging can be a complex process and getting remortgage advice in Manchester could help you find the perfect remortgage product. We are able to search through 1000s of remortgage products on your behalf to find a deal tailored to your personal and financial situation.
Remember to do your research, don’t rush into any deal and get the remortgage advice in Manchester that you need!
Last Edited 02/10/2023