We have made a list of all the Frequently Asked Questions remortgaging that homeowners have been asking about when their current deal ends.
A Remortgage is when you switch your existing mortgage to another lender.
You’re on a standard variable rate (SVR) and want to move onto a fixed rate deal so you can be certain of your monthly repayments.
To release equity in your home if it has gone up in value.
Your current deal is about to end.
You want to borrow more money
You want to switch lenders and maybe change from interest-only to a repayment mortgage.
You have found a lower interest rate
You’re wary of interest rates going up
To fund home improvements.
What’s a product transfer?
This is where your current lender offers you a further follow-on or replacement mortgage product.
When should I Remortgage?
When your current fixed rate mortgage deal ends.
When you can save money by remortgaging, even after paying arrangements and exit fees.
When you own enough equity in your current property.
When shouldn’t I Remortgage?
Weighing up whether to Remortgage or not is task. The most important aspects to consider is money, timing and your personal circumstances, as well as the following scenarios:
If you have a very high early repayment charge and it would be cheaper to wait until the end of the incentive period.
If you have a very low level of equity in your current property, you may find it difficult to get an improved mortgage deal.
You can get a Remortgage with any bank, building society or specialist mortgage lenders, or you can come see me – Stephen Kerrigan, Fee Free Mortgage Advisor with access to several products and lenders will be able to advise you on what’s most suited to your current circumstances.
Can I take a Payment Holiday?
Just because 2020 has been a bad year, and that we all need a Holiday – a Payment Holiday is not what you think. Some lenders will allow you to skip a monthly payment under specific circumstances, such as if you’ve just had a baby or taking a three-month break while one household member takes some time off work.
Although, a payment holiday can really help with short term personal cash flow, you will have to pay the money back at some point. The other thing to consider, is that a payment holiday may have an impact on your credit score, so it’s not advisable to take one unless you really need to.