What is a remortgage?

A remortgage is switching your mortgage from one lender to another. It can also refer to taking a new mortgage when your home is fully owned by you and there is no mortgage present.

Why would you want to remortgage?

There are many reasons you may wish to remortgage. Some examples include:

Getting a better/ cheaper mortgage deal

If your current deal is ending it is advisable to look at your options to avoid going on the lenders expensive standard variable rate and paying more than you need to. At Warwickshire Mortgages, we will compare the mortgage deals offered by your current lender against those offered by the rest of the lenders we have access to and recommend based on which is better for you and your situation. It is almost always cheaper to move to a new deal rather than staying on the lenders standard variable rate.

Extending/ renovating your property

This is one of the main reasons people choose to remortgage their home. Extending and renovating the property can help provide more living space and sometimes increase the value of your home. If you do not have the cash available, raising money from your property can ensure you have the funds to carry out the job. You will need to have a certain amount of equity in the property. We will work with you to access the lenders who can unlock the most from your home. Some lenders will need you to leave a 25% deposit in the property, some a 20% deposit and some will only need 5% depending on your circumstances.

Debt consolidation

If you have debt that has built up over time on credit cards, loans and other finance agreements, you can release money from your home to pay these off. This could reduce your monthly outgoings and make the debt more manageable. You will need to consider if it is worth securing previously non secured debt on the home and that you will pay more interest over all as you will be securing it over a longer term. At Warwickshire Mortgages, we will help you to assess whether it will save you money in the short term or long term so you can decide if debt consolidation is right for you.

Capital raise

Capital raising on a remortgage can be for a variety of reasons. You may have children that you would like to gift monies to. You may wish to purchase or fund the deposit for a new property. You may wish to holiday or buy a new car. Lenders will allow you to raise capital for the majority of circumstances.

When should I look at renewing my mortgage?

At Warwickshire Mortgages we like to start the process of remortgaging 6 months before your current mortgage deal expires.
The reason for this is that most mortgage offers are valid for 6 months. It gives you ample time to collect the paperwork needed, secure a mortgage offer, and allow the solicitor to complete the legal work. The new mortgage will then complete when your old mortgage product finishes, this will ensure you do not pay early repayment charges.
You can typically lock a rate in for 6 months which we can review and change to a cheaper deal if one becomes available before the remortgage completes.
If you are on the lenders standard variable rate or a type of mortgage with no early repayment charges you can review your mortgage as early as you would like to.

Do I have to remortgage, or can I stay with my current lender?

Sometimes your own lender will offer a better interest rate than those in the wider market. Or your situation may have changed, and it is no longer affordable for you to change lender due to an increase in outgoings or decrease in income. In these circumstances we will recommend you stay with your own lender, but we still offer full advice about mortgage products available and review the protection you have to ensure it is still suitable for you.

Why use Warwickshhire Mortgages for my remortgage in Coventry and Warwickshire?

We are expert mortgage advisers. We have many different lenders to compare and get the best deal for you, based on your individual circumstances. We are dedicated to providing a service with the customer at the heart of all that we do, ensuring your remortgage journey is successful and stress free.

Which areas can we cover?

We can help with remortgages in Coventry, Warwick, Leamington Spa, Stratford upon Avon, Kenilworth, Nuneaton, Bedworth, Atherstone, Coleshill, Southam, Rugby and the surrounding areas in our office and the rest of the UK via telephone/ video call.