When’s The Right Time To Remortgage in Manchester?
Remortgage Advisor in Manchester
If you’ve decided to stay in your current property and not move? Well, then you should probably look to Remortgaging. Remortgages are where you transfer to a better deal for your current property, with more favourable interest rates. As an experienced Mortgage Broker in Manchester, this is something we may be able to help with.
If I can already afford my current Mortgage, why should I Remortgage?
The banks rely on customers not shopping around and it’s not uncommon for there to be cheaper offers for you elsewhere. All you have to do is have a look at a price comparison website or contact a mortgage broker to compare deals on your behalf.
If you’ve had your mortgage for quite a long time, then you could be on a low Bank of England tracker deal. You may even be paying less than 1%. If this explains your situation, you might be tempted to leave that mortgage where it is for now. However, your payments will increase when the base rate eventually goes on the rise.
Can I borrow more money for home improvements?
Subject to the usual affordability checks and assuming you have got equity in your property, then it is possible to increase your mortgage for home improvements.
This can be a good investment if you use the money wisely. Often, we see customers do this to facilitate building an extension or converting their loft.
Can I borrow more money to fund other means?
You can borrow extra funds for most legal purposes, examples of this would be:
- Debt Consolidation
- Consumer Purchases
- Gift to relative
- Property Investment (e.g. into a Buy to Let)
Remember by increasing your mortgage you will end up paying back more interest, so you need to be sure you are doing this for the right reasons.
Is adding unsecured debt to my credit a bad thing?
You have to be aware that it can be a bad idea to add debt to your mortgage. This is because 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. This puts you at risk of repossession if you cannot keep up repayments. Consolidating debts that you can afford or credit cards that are at 0% interest will almost certainly be the wrong thing to do.
However, if you need to reduce your monthly outgoings to avoid missing payments, which could damage your credit rating, then it might be a viable option.
Will I be offered a Remortgage by my current provider?
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.