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.
There are a number of reasons people take out a remortgage, here are some of the main ones:
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.
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.
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.
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.
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.
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 3.7% APRC. The actual rate available will depend upon your circumstances. Please ask for a personalised illustration.
Representative example: A capital and interest mortgage of £131,500 payable over 25 years initially on a fixed rate of 2.99% for 5 years and then a variable tracker rate at 3.49% above the Bank Base Rate (currently 0.25%) for the remaining term would require 60 monthly payments of £625.10 and 240 monthly payments of £668.70. The total amount payable would be £198,109 made up of the loan amount (£131,500), interest (£64,900), product fee (£999), broker fee (£595), final repayment charge (£80) & completion fee (£35). The overall cost for comparison is 3.7% APRC representative.
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.
Caboodle Financial Services Ltd
240B Lichfield Road
Sutton Coldfield B74 2UD
Telephone: 0121 308 9114