If you’ve decided that you would prefer to stay in your current property and not move house, then Remortgaging in Manchester could be the next step for you. A Remortgage is where you transfer from your existing deal to a better deal, allowing you to stay in your current property, with more favourable interest rates. As an experienced Mortgage Broker in Manchester, this is something our team of mortgage advisors are able to help with.
The banks rely on their customers not being “in-the-know” and shopping around for a better deal. It’s really quite common for there to be cheaper offers for you elsewhere. By looking at a price comparison website or speaking with a trusted mortgage advisor in Manchester who can compare deals on your behalf, you’ll find that there is probably a more suitable one out there for you.
If you’ve been on your current mortgage deal for a while, there is a chance you could be on a low Bank of England tracker deal. You may even be paying less than 1%. If you happen to find yourself in this situation, you may very well wish to stay with that mortgage deal for the time being. Where this could present an issue, is when the base rate eventually rises, so too will your payments.
Providing you pass the usual affordability checks and assuming there is a substantial amount of equity in your property, then yes you may be able to increase your mortgage to fund future home improvements.
If done carefully and with the right help, this can prove to be a very wise choice, as it gives you an updated home and the chance to increase the value of your property. Often, we see customers do this to kickstart the process of updating their kitchen, creating a home office or converting a loft.
You can borrow extra funds for most legal purposes, examples of this would be:
You must remember that adding debt to your mortgage might not necessarily be the best idea. This is because overall you will end up paying back more interest overall by essentially extending the term of your debts to make the payments lower.
You are also taking debt, which is not secured, and securing it on your home. In the event that you cannot repay this, you are putting yourself at risk of having your home repossessed. Consolidating debts that you can afford or credit cards that are at 0% interest will likely be a problem.
However, if you need to reduce your monthly outgoings to avoid missing payments, which could damage your credit rating, then it might be an option you should take.
Often your current Lender will offer you a new deal to stay with them, they may call this a “Product Transfer” or “Retention” product. This isn’t guaranteed and sometimes you have to contact your provider directly to see what is available to you.
Some lenders allow you to make a product switch online without taking advice or providing further information/documentation.
Whilst it may be easier to stay with the same provider and switch products rather than put forward a new application to a different lender, you may find that you could save a lot of money by doing so.
Also, many Banks still offer preferential rates to new borrowers over existing ones. One day, Lenders will get their act together and realise that taking a more ethical approach would breed loyalty amongst their customers.
Date Last Edited - 21/01/2021