Should you Re-Mortgage?
There are many reasons why re-mortgaging should be an option..
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Saving Money – Interest rates vary all the time and you could find that the interest rates have reduced since taking out your mortgage. The reduction in interest rates could equate to hundreds of pounds of savings. Property prices also fluctuate and you could find that as the value of your property has increased, you could be eligible for more desirable interest rates.
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Home Improvements – Mortgage lenders allow you to release equity for home improvements. This could be anything from a new bathroom and kitchen to a new extension.
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Debt Consolidation – Lenders will allow you to consolidate your commitments by adding these to your mortgage which could reduce your monthly payments and free up more of your income. However, you do need to be aware that you could end up paying more in the long run as your debts have been taken over a longer term. Our advisers do compare the overall cost implications to make sure that debt consolidating is the most suitable option for you.
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Capital Raising – If you are looking to purchase a luxury item such as a new car, boat etc then you can look to do this by raising the money on your mortgage as the interest rates tend to be more favourable compared to a loan or HP Agreement. You can also look to capital raise if you are wanting to help your children with their deposit for their first home.
Is Re-Mortgaging Costly?
Re-Mortgaging doesn’t have to be costly as now lenders offer re-mortgaging packages. These packages are usually for a free valuation and free legal service however some lenders offer a free valuation and cashback which can be used towards legal fees.
Lenders may also charge an arrangement fee however your Jigsaw Adviser will compare the overall costs as sometimes, it can work out cheaper to pay an arrangement fee.
Where to Start
You need to find out the current balance of your mortgage and if there are any charges still outstanding such as Early Repayment Charges. You can do this by calling your existing lender as they can advise you of your balance over the phone.
Once you have found out the balance of your current mortgage, you will need to decide whether you are looking to simply swap your mortgage to a different interest rate or whether you would need to borrow any additional money.
What Lenders will need
Your Age
Most lenders will lend up to age 70 however a small selection of lenders will lend over this age. Your age matters as this determines how many years you can take your mortgage over.
Your Income
Lenders need to know how much income you have this can be made up from many sources including the following:
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Employed or Self-Employed income
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Bonuses, Overtime and Commission
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Dividends
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Child Benefit, Child and Working Tax Credits
Your Commitments
A lender will need to take in to consideration any financial commitments that you may have that will be continuing after your mortgage completes. Commitments could be any of the following:
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Credit Cards and Store Cards
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Loans and HP Agreements
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Buy Now Pay Laters
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School Fees or Child Maintenance Payments
You’re ready to Re-Mortgage, what do you do now?
When you know how much you would like to borrow, you will need to arrange a meeting with a Jigsaw Money Adviser.
In your meeting you will discuss your mortgage requirements in full and your adviser will research the whole market to find the mortgage that meets all of your requirements.
Your Jigsaw Adviser, will take in to consideration any charges that may be attached to your current mortgage such as Early Repayment Charges.
Once the right mortgage has been found, your Jigsaw Adviser will submit your mortgage application. They will deal directly with the mortgage lender to make sure that all of their questions are answered and all their requirements are satisfied. The lender will also instruct a valuation which may be done electronically. If they do require an internal inspection they will contact you directly to arrange the appointment at a time that is convenient for you. Your Jigsaw Money Adviser, will make sure that you are kept up to date throughout the whole process.
If you want to start the re-mortgaging process, contact us today!