Re-Mortgage

Remortgaging in Cheshire: A Comprehensive Guide

What is remortgaging?

Remortgaging is the process of switching your existing mortgage to a new one. This can be done for a variety of reasons, such as to save money on your monthly payments, to get a better interest rate, or to change your mortgage term.

Why remortgage?

There are a number of reasons why you might want to remortgage, including:

• To save money on your monthly repayments: If you can get a better interest rate on your new mortgage, you could save money on your monthly repayments.
• To release equity: If you have a lot of equity in your home, you could remortgage to release some of this equity. This money could then be used for a variety of purposes, such as buying an investment property, making home improvements, or consolidating debt.
• To change your mortgage term: If you want to change the length of your mortgage term, you can remortgage to do this. For example, you might want to switch to a longer term to reduce your monthly repayments, or to a shorter term to pay off your mortgage sooner.

When should I remortgage?

You can remortgage at any time, but it is generally best to do so when your current mortgage deal is about to expire. This is because you will often be able to get a better deal on a new mortgage than you can on your existing one.

How do I remortgage?

To remortgage, you will need to find a new mortgage lender and apply for a new mortgage. The lender will assess your application and, if approved, will offer you a mortgage deal. Once you have accepted the offer, the lender will pay off your existing mortgage and your new mortgage will begin.

What are the benefits of remortgaging?

There are a number of benefits to remortgaging, including:

• Save money on your monthly repayments: As mentioned above, if you can get a better interest rate on your new mortgage, you could save money on your monthly repayments.
• Release equity: If you have a lot of equity in your home, you could remortgage to release some of this equity. This money could then be used for a variety of purposes, such as buying an investment property, making home improvements, or consolidating debt.
• Change your mortgage term: If you want to change the length of your mortgage term, you can remortgage to do this. For example, you might want to switch to a longer term to reduce your monthly repayments, or to a shorter term to pay off your mortgage sooner.

What are the drawbacks of remortgaging?

There are a few drawbacks to remortgaging, including:

• Early repayment charges: If you remortgage before the end of your current mortgage term, you may have to pay early repayment charges. These charges can be significant, so it is important to factor them into your decision.
• Arrangement fees: Most mortgage lenders charge arrangement fees when you take out a new mortgage. These fees can vary from lender to lender, so it is important to compare offers before you choose a lender.
• Legal fees: You will also need to pay legal fees when you remortgage. These fees can be avoided if you use the same solicitor as you did when you bought your home.

How to find the best remortgage deal

The best way to find the best remortgage deal is to compare offers from a number of different lenders. You can do this using a mortgage comparison website or by speaking to a mortgage advisor.

When comparing remortgage deals, it is important to consider the following factors:

• Interest rate: This is the most important factor to consider, as it will have a big impact on your monthly repayments.
• Arrangement fees: As mentioned above, most mortgage lenders charge arrangement fees when you take out a new mortgage. These fees can vary from lender to lender, so it is important to compare offers before you choose a lender.
• Early repayment charges: If you remortgage before the end of your current mortgage term, you may have to pay early repayment charges. These charges can be significant, so it is important to factor them into your decision.
• Other features: Some mortgage lenders offer additional features, such as free overpayments or cash back. It is important to consider these features when comparing remortgage deals.

How to get the best remortgage advice in Cheshire