Remortgage
Re-mortgaging is the process of replacing your existing mortgage with another mortgage, either with your current lender or a different one. Re-mortgaging can be a way to save money on your mortgage payments, change the type of mortgage you currently have, release equity from your property or consolidate other debts into one manageable payment. It may involve paying off your current mortgage in full and starting a new one from scratch, or simply changing some of the terms of your existing mortgage.
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It's important to consider potential costs associated with re-mortgaging. Even if the lender you are considering switching to is offering a lower rate, some costs you will need to consider are:​
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Charges for valuation and solicitors’ fees from the new lender, even if you have already paid these for your mortgage with your current lender.
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Looking at the overall repayment period if you switch mortgages. You may be able to pay less monthly but check the final repayment date of the mortgage as well.
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An early repayment charge to your existing lender if you re-mortgage.
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Think carefully before securing other debts against your home. Your home may be repossessed if you do not keep up repayments on a mortgage or any other debt secured on it.
​It may be possible to switch your mortgage deal with your current lender (known as a product transfer) to avoid unnecessary costs. Many lenders will allow you to switch your mortgage deal reasonably frequently.
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By speaking to one of our advisors, we can discuss your individual circumstances and options to help you decide if re-mortgaging is the right option for you.
Debt consolidation is not always the most suitable option, consolidating debts must be carefully considered. It will usually mean more interest over a longer repayment term and there may also be early repayment penalties on your current mortgage, you should think carefully before securing other debts against your home. There are other ways to manage debt such as free debt advice charities, you can find out more by contacting the Money Advice Service.
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https://www.moneyhelper.org.uk/en/money-troubles/dealing-with-debt/debt-advice-locator
these services may be more suitable for you.
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