What is remortgaging?
Remortgaging is basically moving from your current lender to a new one. The finance that you have on the property gets taken over by the new lender. If you do not have finance on your property and it is unencumbered than you can also remortgage in order to borrow money against that property.
Why should I Remortgage my property?
There are a number of reasons applicants decide to remortgage their property. As moving from your current lender could get you a better deal.
You may be languishing on the lenders Standard Variable Rate (SVR) and by moving to another lender find yourself at a more competitive rate. In doing so the applicant potentially could save a couple of hundred pounds per month on their mortgage. At Rainstone money we will endeavour to save you as much money as possible if we can do.
Applicants also tend to remortgage in order to borrow more money against their property for home improvements, to consolidate their debts or potentially purchase another property. Whatever your requirements may be Rainstone Money will aim to help you in your remortgage process.
How do I remortgage my property?
A mortgage is basically taking over your current mortgage with a new one with a new lender. In order to remortgage, you will need to provide proof of income, proof of address and identification. You will also need to make sure that your current deal is out of its in tie in period or you will be facing early repayment charges.
The lender will evaluate all the information provided and conclude as to whether they will provide you with a mortgage. Rainstone Money will ensure that all paperwork that needs to be provided is done to a correct manner to give you the best chance of getting a new mortgage.
When should I remortgage?
It is best to remortgage three months before your interest rate runs out as otherwise you may be moved on to the lenders SVR and your monthly payments could potentially shoot up. However, at Rainstone Money our main objective is to save our client as much money as possible and we will make sure that if you become a client for us you will be notified of rate changes and we will endeavour to always have you on the best interest rate available to you. Keeping your monthly payments as low as possible.
What are interest rates like now?
The Bank of England base rate is at record low, interest rates are very competitive and Rainstone Money is here to guide you to the best rate possible for your personal circumstances.
As with all mortgages that the bigger the deposit that you have to put towards your mortgage the lower the interest rate will be. For example if you put down a deposit of 10% you will generally be looking at a higher interest rate than say someone putting a deposit of 40%. In terms of remortgaging the more equity (deposit) you leave in your property the better the rates that will be available to you. Furthermore, as the rates at the moment are so competitive leading lenders in the market ae providing additional features to the product for free such as legal costs and valuations which makes it a great time to remortgage your property.
Deals available for remortgaging?
Fixed rates- where the lender will fix an interest rate for a certain amount of time such as 2 years, the fixed rate deals are the most popular as they give you ‘peace of mind’ for the length that your mortgage payments have been fixed for as you know your mortgage payments will not change for that period of time. After your fixed period ends you will be placed on the lenders Standard Variable Rate (SVR) which is usually a higher interest rate.
Tracker- tracker deals are some of the lowest rates available. This rate tracks the Bank of England (BoE) base rate which now is at an all-time low of 0.25% plus a percentage which is set by the lender that you decide to use. An example of a tracker rate would be the BoE base rate of 0.25% plus another 3% giving you a rate of 3.25%.
There are also other variable rates available such as discounted or capped mortgages which give either give a discount on the standard variable rate or cap the standard variable rate at a certain amount. These rates again are only for a certain length of time and then you will be reverted back to the lenders Standard Variable rate.
Remortgage deals which one should I take?
Finding the right mortgage deal can be confusing. That is why at Rainstone Money we have an up to date and easy to use comparison service on our site to make searching for the best deal available right at your fingertips. However, when comparing mortgages make sure to factor in all additional costs such as arrangement fees and legal costs in order to understand exactly how much you will be paying overall.