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  • Writer's pictureCharlotte Oakley

Can You Remortgage Early? Understanding Remortgaging with Your Mortgage Room


Can You Remortgage Early? Understanding Remortgaging with Your Mortgage Room

Many homeowners find themselves considering remortgaging as a viable option to manage their finances effectively. Whether it's to release equity, secure a better deal, or cater to changing personal circumstances, remortgaging offers a range of benefits. 


In this blog post, we explore the advantages that our brokers from Your Mortgage Room bring to the remortgaging process, including covering the key question: can you remortgage early?


What is Remortgaging?


Remortgaging involves switching from one mortgage deal to another without necessarily moving home. It's a strategic financial move aimed at securing better terms, and rates, or releasing equity in your property.


Can You Remortgage Early?


Yes, you can remortgage early, but it's essential to weigh the pros and cons carefully. Early remortgaging can incur additional fees, such as early repayment charges (ERCs), which need to be factored into your decision-making process.


Early remortgaging can provide homeowners with the opportunity to secure better deals, potentially saving money in the long run.


Pros and Cons of Remortgaging


Pros

  • Potential to save money with lower interest rates

  • Flexibility to release equity for various purposes

  • Opportunity to switch to a more suitable mortgage term or product

Cons

  • Incurrence of early repayment charges (ERCs)

  • Risk of higher interest rates if market conditions are unfavourable

  • Possible additional fees associated with remortgaging process

When should you think about Remortgaging?


The key time to think about exploring remortgage options is around six months before your term ends, you can mitigate market volatility and potentially secure a better deal. 


Additionally, significant life changes such as a salary increase, starting a family, or changes in interest rates may prompt homeowners to reassess their mortgage arrangements. 


Moreover, if your property's value has increased substantially since taking out your mortgage, you can use the equity in your home through remortgaging for home improvements or other financial needs. 


Ultimately, considering remortgaging is a proactive approach to managing your finances and optimising your mortgage terms to suit both your needs and market conditions.


Important: Understanding Early Repayment Charges (ERCs)


Before proceeding with early remortgaging, it's crucial to understand early repayment charges (ERCs) and their implications. Our team of mortgage advisors will guide you through ERCs and answer any questions to enable you to make an informed decision.


Benefits of Early Remortgaging


1. Securing Better Deals

By remortgaging early, homeowners have the opportunity to secure better deals with lower interest rates, leading to potential long-term savings.


2. Mitigating Volatility

Looking into remortgaging six months before your current mortgage term ends can help mitigate any fluctuating market conditions that may affect the market. 


3. Catering to Changing Circumstances

If you’ve experienced changes in your personal circumstances, early remortgaging allows you to adapt your mortgage, ensuring alignment with current financial goals and situations.


4. Avoid Costly Fees

Avoid costly fees associated with staying on standard variable rates (SVRs) or early repayment charges (ERCs) on fixed-term deals.


Remortgaging for different situations: How Your Mortgage Room Can Help


1. Self-Employed Remortgage

For self-employed individuals, the remortgaging process can present challenges and complexities. Unlike traditional employees with steady income streams, self-employed individuals often face scrutiny regarding their earnings stability and financial documentation. 


Lenders may require extensive documentation, including tax returns, business accounts, and profit forecasts, to assess their eligibility for remortgaging. 


Our team of mortgage advisors will help guide self-employed individuals to secure better mortgage terms for their financial arrangements.


2. Remortgaging for Buy-to-Let Properties

Remortgaging buy-to-let properties requires a strategic approach. 


By refinancing existing mortgages, investors could secure better interest rates and terms, enhancing rental yields and profitability. 


Additionally, remortgaging allows investors to adapt to changing market conditions or investment strategies, ensuring long-term sustainability. 


At Your Mortgage Room, we can provide advice and guidance on maximising returns and securing favourable deals for buy-to-let investors.


3. Remortgaging when House Value has Increased

Remortgaging offers an opportunity to access the newfound equity in your home to fund home renovations, consolidate debts, or invest in other ventures. It can also help you secure better mortgage terms or lower interest rates, thereby reducing your monthly payments or overall borrowing costs. 


Reasons for remortgaging to release equity


1. Remortgage for home improvements

You may have dreamed of that new extension or may simply need some extra money to fund home improvements such as a new bathroom. Remortgaging provides an avenue for releasing equity in your property, which can be utilised for home improvements and renovations.


2. Remortgage for Debt Consolidation

Sometimes for whatever reason, various debts have accumulated and need sorting out. Remortgaging for debt consolidation allows homeowners to combine multiple debts into a single mortgage, potentially reducing overall monthly payments and simplifying their financial management.


Top Tip: Take Your Time


When it comes to selecting a mortgage, don’t just settle for the first rate offered by the lender. It's important to explore all available options to secure the right mortgage deal for you. 


Our experienced team will guide you through the process, analysing your financial situation and preferences to find the most suitable solution. 


By considering multiple offers and negotiating on your behalf, we ensure that you get the best possible terms and rates, ultimately saving you money and providing peace of mind. 


The Benefits of Remortgaging with Your Mortgage Room


There are a whole host of benefits as to why we at Your Mortgage Room are well-served to assist with the remortgage process.


Firstly, with our knowledge and expertise in the remortgaging process, you receive personalised guidance every step of the way. 


Secondly, we work to secure the best deals and terms available in the market, saving you time and effort while maximising your savings. 


Additionally, as independent brokers, we have access to a wide network of lenders and mortgage products, allowing us to find the perfect solution that aligns with your financial goals and preferences. 


With Your Mortgage Room, remortgaging is in capable hands.


FAQs


1. Can I remortgage early to release equity for debt consolidation?

Yes, early remortgaging can be utilised to release equity for debt consolidation, subject to eligibility criteria and financial assessment.


2. Is it advisable to remortgage if my property is in negative equity?

Remortgaging in negative equity situations requires careful consideration and expert advice. 


3. How does remortgaging affect my credit history?

Remortgaging may impact your credit history, particularly if there are missed payments or defaults. It is important to receive guidance on minimising adverse effects on your credit profile.


4. Can I remortgage a buy-to-let property for home improvements?

Yes, remortgaging buy-to-let properties for home improvements is possible. We help homeowners explore their options and secure suitable financing solutions.


5. What factors determine the amount of money I can remortgage for?

The amount of money you can remortgage for depends on various factors, including your property's value, outstanding mortgage balance, income, and personal circumstances. 

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