Chris Collins of CC Mortgages explains what is involved with a re-mortgage and how it can benefit families
With summer fast approaching, we have been extremely busy at CC Mortgages helping many new clients to re-mortgage their property. The most common theme for this is to raise funds for home improvements, such as a new garden or, with more and more people working from home, to create a home office.
With house prices high, particularly in Bristol, re-mortgaging allows clients to access equity in their houses in a way that best suits their needs.
Re-mortgaging is the process of transfering your existing mortgage to a new lender. This can be a ‘like for like’ process where you simply transfer the balance to a new mortgage provider. Often, however, some clients look to re-mortgage to transfer their existing balance and borrow additional funds for home improvements. Re-mortgaging typically also creates an option to adjust the term of the mortgage, allowing you to consider reducing the term of your mortgage if your budget allows.
Given the current economic climate, a major factor in people looking to re-mortgage is to secure a new interest rate and fix this for a longer period. Some lenders have more competitive rates available than others so it is always worth shopping around for the best deal. At CC Mortgages, we have access to exclusive rates and deals available only through the intermediary channel.
If you are within six months of your current fixed rate coming to an end, you are eligible to apply for a new mortgage product. This new product will then simply switch to a new deal when your current deal expires. Many lenders will also offer fantastic incentives such as free legal costs, cash back and a free valuation, which is attractive to customers when looking to re-mortgage.
If you re-mortgage before the end of your fixed rate period, many lenders will apply something called an early repayment charge. We will discuss these options with you at our very first appointment.
With the Bank of England predicted to increase interest rates again in the near future, many of our clients are looking to lock in fixed rate deals for five years or more to mitigate any potential future interest rate rises.
If your fixed rate is due to expire in 2022, then now is the time to be looking to lock in a new mortgage deal.
At CC Mortgages we offer a free consultation and are happy to assist you with your re-mortgage needs. All new clients will also be provided with a free Will, which certainly helps to bring peace of mind to families.