Remortgages

Remortgages

What is a remortgage?

A remortgage is essentially the process of replacing your existing mortgage with a new one, effectively moving your mortgage loan from one lender to another. It is also possible to raise additional funds when you remortgage simply by increasing the amount you borrow with the new lender.

There are thousands of remortgage products available in the UK to choose from and as Caboodle have access to some of the industry leading technology we can search our comprehensive panel for you and find the best remortgage deals to match your circumstances and requirements.

Why should I remortgage?

There are a number of reasons people take out a remortgage, here are some of the main ones:

Are you paying too much on your current mortgage?

With so many remortgage products to choose from and with many lenders changing rates on a regular basis it is very easy to find that your mortgage is no longer as competitive as it was when you took it out. The interest rate you are currently paying may be higher than it could be and you may be able to substantially reduce your monthly payments and the total interest payable by taking out a remortgage.

Coming to the end of your current deal?

When you reach the end of a fixed, tracker, discount or capped rate deal, you`ll probably start paying the lender`s standard variable rate (SVR). This can often be 1-2% higher than the rates available on remortgage products so it may make sense to switch to a new product or even a new lender. You need to consider any costs associated with taking out the new mortgage and any early repayment charges payable on your old mortgage but if the savings from the new rate outweigh the cost of switching then it may be worth remortgaging.

Need to release some cash from your property?

You may be planning some home improvements, or perhaps you are considering a major purchase such as a car, caravan or holiday home. You might even be thinking of funding a wedding or university fees. Whatever the purpose, you may be able to raise the cash you need with a Caboodle remortgage. Provided you have sufficient equity in your home (Equity = Value of property less any outstanding balances on secured loans & mortgages) you could borrow the money you need at a low mortgage rate and avoid paying high rates on loans and credit cards.

Concerned about interest rates and want to fix your rate?

If you are currently on a variable rate mortgage and are worried that your payments may become unaffordable if interest rates increase, you may want to consider remortgaging to a fixed rate mortgage. This would ensure your monthly payments remain the same each month for a period of time irrespective of what happens to future interest rates and give you the security and comfort you need.

Struggling with credit commitments?

Need to consolidate some debts? If you are struggling to keep up with your unsecured debts or want to combine them all into one managable monthly payment, a remortgage could be the ideal solution for you.

You could take out a new mortgage that`s big enough to pay off both your original mortgage and your other debts. You would obviously owe more to your mortgage provider, but you would wipe out your other debts and as a result you could dramatically reduce your monthly payments and interest charged. You`d also have just one repayment to make so your finances would be much simpler.

It is important to remember though that by spreading short term debts over a longer term you could end up paying more in the long run. You would also be adding previously unsecured debts to your mortgage and would therefore be at risk of losing your home if you didn`t keep up with your payments.

What about early repayment charges?

If you are concerned about whether you will have to pay an early repayment charge to your existing lender if you remortgage, then don’t worry, your mortgage adviser will discuss this with you in detail and in some cases savings are still possible even where an early repayment charge applies.

 

For more information speak to one of our advisers today on 0800 151 2407 or 0121 308 9114. Alternatively complete the short online enquiry form to request a call back.

We can often arrange face-to-face appointments in Mere Green, Four Oaks, Sutton Coldfield, Lichfield, Tamworth, Burton, Birmingham, Walsall, West Bromwich and many other surrounding areas of Staffordshire and the West Midlands. Alternatively we can make arrangements for you to visit our offices to discuss your requirements in more detail.

 

The overall cost for comparison is 4.4% APRC. The actual rate available will depend upon your circumstances. Please ask for a personalised illustration.

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. CONSOLIDATING DEBTS MAY INCREASE THE TERM AND TOTAL AMOUNT PAYABLE.

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. CONSOLIDATING DEBTS MAY INCREASE THE TERM AND TOTAL AMOUNT PAYABLE.

Your initial consultation is free and you are under no obligation to proceed with a mortgage we recommend. There will be a fee for mortgage advice. The exact fee will depend on your circumstances and may be reduced depending on the loan amount and any commission we receive from the lender. It is estimated that the fee will be £595, but it may range from £495 to 1% of the amount you borrow. The fee is only payable on completion and can normally be added to the mortgage. This will be discussed and agreed with you before you make an application. Please ask for a personalised illustration.

Secured loan rates from 3.95% APRC, although we have plans available up to 29.9% APRC which allow us to assist customers with the most severe credit problems. The overall cost for comparison is 9.2% APRC. For secured loans a broker fee up to 10% of the loan amount borrowed may be payable on successful completion. A lender fee may also apply. The actual APRC available will depend on your circumstances. All loans are subject to status. Please ask for a personalised illustration.

The guidance and/or advice contained in this website is subject to UK regulatory regime and is therefore restricted to consumers based in the UK.

Caboodle Financial Services Ltd, registered in England at SQ2 House, 240b Lichfield Road, Four Oaks, Sutton Coldfield, West Midlands B74 2UD (number 08044670).
Caboodle Financial Services Ltd is an appointed representative of Pink Home Loans, Pink Home loans is a trading style of Advance Mortgage Funding Limited, which is authorised and regulated by the Financial Conduct Authority (FRN 305008) for mortgage and non-investment insurance advice.
The Financial Conduct Authority does not regulate some forms of Buy to Let.

© 2014 Caboodle Financial Services Ltd