What is a Remortgage?
A remortgage is a new like-for-like replacement or a replacement with a slight change or two such as including additional borrowing, perhaps shortening or extending the term by a few years to accommodate budget or lifestyle changes. This remortgage is taken out on your existing property without selling it.
A remortgage is most often used at the end of your current mortgage deal, this is the time when most mortgages revert to the lenders Standard Variable Rate (SVR), which is often a much higher interest rate. By remortgaging as your deal comes to an end, you will avoid the lenders SVR and save money on monthly repayments by securing a new deal with the current competitive interest rate. This new mortgage might be with the same lender you are currently with, or with a different one, it all depends on what’s currently on offer and what’s best for you.
When you remortgage to raise funds secured against your property, it is a very cost-effective form of lending.
• planned home improvements such as extending or developing further
• raising a deposit to purchase an additional property (buy to let) or to help family member with a gifted deposit
• debt consolidation
• financing a large one-off purchase such as a wedding or new car
There are various ways that additional funds, often referred to as capital raising, can be raised against your home including, a further advance or draw down from your existing lender, an unsecured loan or a second charge mortgage.
We will help you to determine which is the best option for you, then source a lender and product to meet your needs.
If you are considering a remortgage, whether that’s with your current lender or moving to a new lender, either to secure a better rate or raise additional funds, Aspire Financial Services can help assess what is the right option for your individual circumstances
Get in touch today for independent advice. Call to book a free 30-minute consultation.