remortgage house in exeter

Are you looking to fix what your monthly payment will be for the next few years or simply reduce your monthly repayments?


With economic changes and potential rate rises fixing your mortgage repayments could provide a more stable monthly outgoing and peace of mind. By paying a slightly lower rate of interest you could make an immediate difference on your monthly mortgage payments. This could save you thousands in the long run.


Our Detectives Manual To Refinancing


Remortgaging is the replacement of an existing mortgage with a new one. You will need to check that you have enough equity in your current property prior to considering remortgaging. To remortgage you may simply look to finding a new deal from your existing lender or by choosing a competitor with a better deal.


You will need to consider early repayment charge and reservation fees demanded by your old and new lenders. The old lender may charge you a penalty while the new one an arrangement fee. The new lender will want to value the property just as your old lender once did. So there’ll be surveyor fees, not to mention some conveyancing. And that means solicitors are likely to get in on the act once again. So, if you’re considering a remortgage, do your sums carefully. You may find yourself facing the equivalent of several months mortgage payments, wiping out the benefits of remortgaging.


Once you find out how much the total switching will cost, you can decide if remortgaging is worth it for you. You can start to look for your new mortgage.


Pay Your Mortgage Off Sooner

Your financial situation can change several times during the period of your mortgage. Examples of this include your salary increasing, inheriting some money or wishing to pay their mortgage off sooner.  If you switch to a lower interest rate, while maintaining the same monthly payment, you could potentially reduce the length of your mortgage by several years.  How much better could your retirement plan be if you reduced the duration of your mortgage?

On the other hand, if your finances suddenly become tight, you can use the same principle in reverse.  Increasing the term of your mortgage can to reduce your payments to manageable levels.


Raise More Money From Your Home

Rather than reducing outgoings, you may choose to change your mortgage to access additional equity on your home. You can do this if the value of your home has increased since you took your current mortgage or if you have reduced you the amount you borrowed through repayments. You could use the additional funds for investing in your current home with home improvements, investing in a new property or investing in your children’s future for university fees.


Debt Consolidation

Remortgaging can be used to release equity in your home and use the money to pay off existing debts. If monthly disposable income is tight then this can often be a sensible way of managing debt. Think carefully before securing other debts against your home. Your home may be repossessed if you do not keep up repayments on your mortgage.





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