Remortgaging your home can be a great way to free up cash, particularly for those with significant equity. However, it’s not ideal for every situation, so due consideration needs to be taken as to whether it’s the right move for you and it will likely involve talking to your friendly neighbourhood mortgage broker.
Here we offer some useful mortgage advice relating to the concept of remortgaging and what the benefits are to those who opt for it. Even if you’re yet to buy your first home*, this is something you may encounter in the future, so it’s well worth a read!
*For complete newbies entering the home buying sphere, we recommend you take a look at our beginner’s guide to getting a mortgage.
Those Who it’s Not Ideal For
If you approach any mortgage broker worth their salt, they’re going to give you impartial advice about the best course to take and invariably, those in the following situations aren’t going to find that remortgaging makes much sense and they are:
- Those who are close to retirement
- Those with little or no equity in their property
- If you’ve recently entered a fixed rate mortgage deal
- Anyone who has had credit issues since gaining a mortgage (although this doesn’t necessarily mean you can’t – it just makes it harder)
Those Who Can Benefit
If you don’t fall into any of the categories above, then there are numerous advantages to remortgaging your property. For instance, a reputable mortgage advisor could help you to unlock some of the equity in your home so that you can either enjoy a cash lump sum, pay off debts or perhaps provide your kids with a deposit for their first home.
Another benefit to remortgaging your property could be that you get to enjoy a more competitive rate of interest that better suits your life situation. You could even look to reduce your monthly payments by spreading your existing balance over a longer period, giving you more room to breathe. In the modern world, things are pretty tight for many, which is why remortgaging is still so popular.
It perhaps can’t be stressed enough that before making a major change like remortgaging your home, that you speak to your mortgage advisor or financial advisor first, as there are things many variables to take into account. Mortgage rates are typically much lower than bank loan interest rates, so for example, settling a bank loan in this way might make sense – unless of course there are hefty mortgage arrangements costs and other charges to consider.
Suffice to say that until you look into the finer details of your remortgage deal, you may not fully grasp whether it makes prudent sense. That’s the kind of thing that your mortgage broker will be able to help you with, so you should always include them in the conversation about why you’re trying to remortgage.
Essentially what we’re trying to say is that the benefits of remortgaging are many and varied, but only if it suits your individual circumstances, so don’t jump in with both feet until you’ve had a chat with a trusted mortgage advisor.
In Need of Assistance?
At Yes Mortgage Services, we pride ourselves on being honest and impartial in everything we do, as our only goal is to find you the best and most suitable mortgage or remortgage for your needs. There are most certainly mortgage brokers out there who don’t have their customers’ best interest at heart, but that’s not something you’ll experience with us, as it goes against everything we stand for.
We’re flexible too and we can come and discuss your mortgage needs with you in the comfort of your own home, at a time that suits you – even if it’s in the evening! So, if you’d like to book an appointment or just make contact, you can get in touch with either by calling us on 0800 612 5596 or connecting with us on social media.
We’re ready and waiting to help you with your mortgage advice needs and we’d be delighted to hear from you.
A whole of market Mortgage Broker, who doesn’t charge you a Broker fee.
Irrespective of whether you are looking to buy a new home, re-mortgage an existing property, or looking to protect your family from the unpredictability that life throws at it or protect your income if you are unable to work due to accident or ill health.
Yes Mortgage Services are committed to offering you the highest possible standards of service. We can undertake the whole process from answering the initial questions through to handling multiple product applications. Ensuring that everyone gets treated with the same urgency and maintaining your best interests are our main goals irrespective of the value of the mortgage.
We recognise that both we and our customers have everything to gain if we look after your best interests and treat you fairly in all aspect of our dealings with you.