Is re-mortgaging an option during the pandemic?

Are you are totally settled and happy in your current family home but could do with a little more space? Or have you have spent so much time at home recently you can see how your home could do with updating with a refurbishment. Maybe you think downsizing is your only option if you are struggling with monthly outgoings.  Or, as is the case for many of our clients, have you have managed to increase your savings during the pandemic? Whatever your current circumstances, now might be the ideal time to review your finances and consider re-mortgaging your home.

We would love to help you find the right option.

The pandemic has created challenges that the country has never experienced. You might think that re-mortgaging is out of the equation for you. Especially if you have been impacted by job risk or furlough.  

But leave that for us to decide.

You might not be coming to the end of your current mortgage product, but that does not necessarily mean you are stuck and are unable to swap to a more appropriate and beneficial mortgage.   

What does re-mortgaging my property mean?

Around 30% of homeowner loans are through re-mortgaging.  

If you currently have a residential mortgage against your property, the mortgage lender owns that property until you clear the mortgage, and any associated charges, in full. You make monthly payments towards the mortgage balance.

Re-mortgaging means that you pay off your existing mortgage with the finance from a new mortgage. In essence you are refinancing your home, taking out a lower cost or different length of new loan which will pay off the old one. There are a number of reasons which are considered acceptable in the application process.

Why re-mortgaging might be right for you

Home Improvements.

One common reason for re-mortgaging is to improve your home in some way. This could be for additional work required to increase its value. Or restructure and rearrange the layout of your home to help with access. Or simply to create more space. All saving the upheaval to a new home. So, you might be thinking about an extension, conversion, or refurbishment.

Existing mortgage term coming to an end.

Many of the ‘better’ or more affordable mortgage products are fixed rate mortgages and these run for a fixed period. Two to five years is the average for fixed rate mortgages, trackers, or discount mortgages.

It is when the existing fixed rate is coming to an end that many of our clients consider re-mortgaging to avoid reverting to the mortgage lender’s standard variable rate, which is likely to be higher than the fixed rate, and more than the current best offers across all mortgage lenders.

Flexibility of a new mortgage.

Something you might not have considered when taking out your original mortgage was how flexible it could be for you. Are you able to overpay, flex your repayments, or pay lumps sums as and when you can? Is your mortgage attached to other savings, your current account, or other banking products?

Re-mortgaging will give you options to assess what new products are available now.

Consolidation of debts.

Re-mortgaging can be an option to help consolidate, or bring your current debts, credit card balances, loans, and such like into one place, with security in the total debt taken against your home.

Reduce your mortgage balance.

Of course, you might be in the fortunate position of re-mortgaging to reduce the balance on an existing mortgage and opt for a lower repayment, shorter repayment term, or a completely new mortgage product which is better suited to your circumstances.

Why Simpson Financial Services are the experts in independent re-mortgaging advice

• Our Mortgage Advisors are totally independent, not tied to any specific lenders. In fact, we can tap into the entire network of lenders throughout the UK.
• We have access to over 1000 mortgage products at any time, competitive rates, and often ‘exclusive’ deals, which can only be offered by independent mortgage brokers such as ourselves.  
• We offer a ‘Mortgage Health Check’ at no cost to you, to assess your existing mortgage. From this, we will be able to calculate any cost savings a new product or lender could bring.
• Whether it is for pure cost savings, retirement planning, a change in circumstances, or concern about the interest rates changing, our goal is always to find the best and most appropriate financial solution for you.
• We don’t just find the best new product. The impact of early repayment and any charges is also assessed in the re-mortgaging process. We work through all the details with you, to make sure you are completely satisfied with your options.
• And once we have agreed on the best offer for your specific circumstances, we handle the paperwork and communications with the new lender to take the pressure away from you.

So, if you are having to tighten your purse strings, want to make some home improvements, or put your additional savings to good use, our independent re-mortgaging advice is a great place to start. Contact Simpson Financial Services to arrange your free Mortgage Health Check and discuss your options.