Remortgage
"I'm a Specialist Mortgage Advisor who can help your property dreams come true."
Ross McMillan
Blue Fish Mortgage Solutions
As a former estate agent of almost 15 years, I now use my vast experience, insider knowledge and access to dozens of lenders to help people like you:
- Secure the right mortgage for your circumstances.
- Successfully master the Scottish property buying process from start to finish.
- Achieve your property ambitions - however big or small
Get in touch for a no-obligation chat about how I might be able to help you.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.
Some Buy to Let mortgages are not regulated by the Financial Conduct Authority.
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So your initial mortgage deal is coming to an end, what do you do now…it could be time to remortgage?
As one of the largest financial commitments that you’ll ever make, any kind of mortgage is an extremely important life decision. At Blue Fish we are here to give advice, support and assistance to guide you through the wide range of remortgage products in the marketplace.
What Does it Mean to Remortgage?
Remortgaging means switching your mortgage to another deal with another lender, without moving home. When the initial interest rate comes to an end, it is likely that you have reverted to the lenders standard variable rate or SVR.
What is a Standard Variable Rate?
Generally, the SVR isn’t the cheapest option and can be higher than alternatives either offered by your existing lender or a new one so switching mortgage deals can therefore often work out much cheaper and save you money either monthly, long term, or both.
Can A Remortgage Help Pay Off My Mortgage Early?
Remortgaging can also help pay off your mortgage early by replacing your current mortgage with better terms a lower interest rate and keeping your monthly payments the same, you will be able to reduce your mortgage term and get your mortgage repaid quicker.
Do I Have To Change Lenders when I Remortgage?
You may be able to find a new mortgage deal with your current lender and it may even work out cheaper to do so. Always check it against what may be available through other lenders though, just to make sure you are getting the right deal for you.
What Is An ERC?
Most mortgages have an early repayment charge (ERC) during the initial deal period, so you cannot re-mortgage during that time without paying a penalty charge. However, if the numbers still make sense once this fee is taken into consideration you can still do so but in many cases you may wish to just hang fire and consider re-mortgaging once your initial deal is up and you are free to move your mortgage without paying these fees.
Speak to an expert!
Contact me, Ross McMillan, the owner of Blue Fish Mortgage Solutions today for expert advice and guidance on your unique mortgage and property needs. I will work with you one-on-one to help you find the right solution for your specific needs. With my expertise and industry connections, you can rest assured that you are in good hands when it comes to securing the financing you need for your property.
Why Remortgage?
There are lots of great reasons to remortgage and here are just a few:
Your current deal is coming to an end, or, it’s already ended
Usually initial mortgage deals last between 2-5 years. When a deal ends you fall on to something called the standard variable rate. (Commonly called SVR) Therefore your monthly payments will usually jump up. It’s best to start looking for new deals potentially avaiable to you to remortgage 3-4 months before the current deal ends to ensure you don’t end up on the SVR.
You can get a better rate
Sometimes for leaving a deal you’re tied in to you’ll have to pay an early redemption charge (ERC) but it still may be in your interest to change the deal if it saves you considerable amounts over that period. At Blue Fish we can advise and help work out how much any new remortgage will save you, and advise whether this may be enough to be worth paying the ERC.
You are currently on an interest only mortgage and don’t have a plan to repay
In this case it can be beneficial for you to remortgage and switch to a repayment mortgage in order to get the balance paid off during the term.
You want to borrow more money
Maybe you want to do some home improvements, build an extension or maybe even are looking to raise funds to buy a second home or caravan. Perhaps you are going through a separation or divorce and looking to remortgage to buyout your partner from the mortgage. Using the equity you have in your home via a remortgage with additional borrowing may be a great way to help with your aspirations and ambitions.
When can you typically apply for and secure a new rate?
You should start considering your re-mortgage around 6 months before your product ends. That way you can get everything lined up to avoid going on to your lenders typically ore expensive standard variable rate. If you actually complete on the mortgage before your product ends you may however incur early repayment charges so its important to get the right advice I relation to the timing of all this.
Can you remortgage early?
It’s possible that you may not need to wait until the end of your current fixed rate deal to be able to secure a new rate.. It depends on your circumstance but if you are concerned about the path of interest rates are on currently, it may well be be feasible to secure the rates available to you today and not take a chance on the ones that may be around at the end of your current deal.
Reasons not to remortgage:
Early repayment charges
If you are in a deal and have an early repayment charge you really need to do the maths and work out if it’s worth paying it, quite often the answer is no.
Credit problems
If you’ve had credit problems since taking out your mortgage, it may not be in your best interest to get a new mortgage as a new lender may not be willing to lend to you as a result of this.
You have a very small mortgage
Once your loan is small, chances are that you won’t fit many lender’s criteria, so it’s often not worth changing. That said, it really can’t hurt to look and find out.
How Much Does It Cost To Remortgage?
This will of course vary depending on a lot of things. However you should consider any mortgage advice fees, any potential product fees and possibly even valuation or conveyancing fees. Usually with a re-mortgage you won’t have valuation or conveyancing fees, but it’s possible so make sure you know what the fees are associated with your new mortgage.
Hopefully the above information has been useful but if you have any other questions or are ready to look at your own re-mortgage options now, please fill in the enquiry form and we will get in touch!
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