Can I Remortgage At Anytime
Remortgaging is when you take out a new mortgage on a property that you already own. About a third of all home loans made in the UK are remortgages. However, it is an action that needs to be carefully thought out because a mortgage can be your most significant financial commitment and the main reason people remortgage is to save money.
Applying skills of saving money can also be used to save on your mortgage, but there are pros and cons to remortgaging that should be known. Hence, you know unexpected circumstances such as the coronavirus pandemic could have a significant impact on your property due to its effect on the economy.
When should you remortgage?
- When your current deal is about to end.
- When you want a better rate.
- When your home's value has risen rapidly.
- You're worried about interest rates going up.
- You want to pay in large, but your lender won't allow it.
- You want to switch from interest-only to repayment mortgage.
- You want to borrow more.
- You want a flexible mortgage.
When shouldn't you remortgage?
- Your mortgage debt is minimal.
- Your early repayment charge is large.
- Your circumstances have changed.
- Your home's value has dropped.
- You have very little equity.
- You've had credit problems since taking out your last mortgage.
- You're already on a great rate.
Coronavirus and remortgaging
As we all are still experiencing a pandemic, getting a mortgage could be challenging especially if you're self-employed or your finances have been badly affected due to COVID-19.
Some important things to remember:
- A three-month mortgage payment holiday is available online if it has been difficult to pay your existing mortgage, provided an agreement has been made with your lender. Check application dates online.
- If you're looking at taking out a mortgage or to remortgage, this is a great time to find a good broker that will help you.
Remortgaging can save you a lot of money. It won't hurt to take time to consider a few things when you're ready to remortgage, here are some pointers:
- Start early, don't leave it until the end of your current mortgage to see what's available.
- Work out what you need - the lower you loan-to-value (LTV), the better deals will be available to you.
- Check fees - the lower your loan-to-value (LTV), the better deals will be available to you.
- Avoid penalties - many deals have early repayment penalties which could cost thousands of pounds.
- Approach your current lender - Once you've found a new contract that can save you money, it's worth speaking to your current lender to see if they can match it or offer you something even better.