When you remortgage, you are switching your mortgage to another deal, and frequently, another lender.
Remortgages can be used for various reasons. However, most people simply switch mortgages because it will work out cheaper for them. For example, the introductory discounted interest rate may have finished with your current lender; therefore you could potentially get a new discount rate, or a lower APR, with another lender. Another example is when you may need to re-mortgage to consolidate debts.
It is worth noting that a remortgage is not the best option in all cases. Even if the lender you are considering switching to is offering a lower APR, you must take into consideration the facts that:
The new lender may charge you for valuation and solicitors fees, even if you have already paid these for your mortgage with your current lender.
If you switch mortgage remember to look at the overall repayment period. You may be able to pay less monthly, but check the final repayment date of the mortgage as well.
Also you may be able to switch your mortgage deal with your current lender, avoiding any unnecessary costs. Many lenders will allow you to switch your mortgage deal reasonably frequently.
THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.
Securing short term debts against your home could increase the term over which they are paid and therefore increase the overall amount payable
Remortgage: please note that an early repayment charge to your existing lender may be payable.
We offer the option where we can be remuneration by commission from the lender, a combination of a fee and commission or you may have the option to pay us a fee and receive any commission which we are paid by the lender. If you choose this option, we estimate that the fee will be.
For residential mortgage products £225.00 payable on completion
For Commercial mortgages 0.5% of the mortgage advance (for example on a mortgage advance of £150,000 our fee will be £750.00 payable on completion)
Buy to Let Mortgages a fee of £225.00 will be payable on completion of the mortgage.