- get a better rate on your current mortgage
- consolidate your debts and monthly outgoings
- release equity in your property
- move home
In happier financial times, remortgaging was a popular way to release equity in your property, say if you wanted to install a new kitchen or do expensive running repairs. Nowadays, however, when the financial climate is not quite so buoyant, any remortgaging should be based on need rather on the desire to accrue luxury fixtures and fittings. You should bear in mind, too, that if you leave your current mortgage earlier than planned there may well be financial penalties to pay, as well as any costs associated with your new mortgage. It will pay you in terms of time and worry to factor all these ‘unseen’ costs into your calculations.
How to Remortgage your Home
If you have decided to stay with your current mortgage lender the process should be relatively trouble free and clear-cut. Just before your mortgage term is due to expire you can expect to be contacted by your lender, who will discuss your options with you.
If you feel a bit intimidated by all this talk of interest rates, fixed rates and variable rates, however, take heart, you are not alone. If this applies to you we would urge you to contact a mortgage broker, who will be aware of products that aren’t necessarily available direct to borrowers. All UK mortgage brokers are answerable to the FSA (Financial Services Authority); this means you can be confident that you will be dealt with in accordance with the
FSA Code of Conduct. (This is a pdf file). To put it simply, the regulations of the FSA mean you can expect to be treated with fairness and honesty. You should bear in mind that most mortgage brokers charge for their services, another ‘unseen’ cost to factor into your calculations.