Why consider a residential remortgage
There are a variety of reasons for considering a residential remortgage, including:
To save money - if you’ve come to the end of a deal, you may find that another lender will be willing to offer you a better rate allowing you to save money on your monthly payments.
To raise money - if there is some equity in your property, a residential remortgage could allow you to release some of these funds
To avoid having to move home – if you need more space, it can sometimes be cheaper to add an extension to your existing property rather than moving house, and remortgaging could help to fund this.
To take advantage of a change in your financial situation – if your finances have improved since you originally took out your mortgage, you could find that a new lender will offer a more competitive interest rate.
Before remortgaging you should consider:
Your current repayments – will you pay more or less each month by remortgaging? Will remortgaging offer you greater flexibility over monthly payments?
Conditions on your current residential mortgage – will you incur a penalty fee for remortgaging?
Additional costs – don’t forget to factor in extra costs such as legal fees before you decide to remortgage
When you apply for a residential remortgage you will be expected to meet certain criteria - if you do not meet these requirements, your application may be rejected. Mortgage lenders will consider factors such as:
- How much existing equity do you have?
- How much do you earn?
- How stable is your income?
- Do you have any outstanding debts?
- Do you have a good credit history?
Types of residential remortgage
If you are searching for a residential remortgage deal, there are several types available, including:
Tracker remortgage - your repayments vary depending on the tracked index
Fixed rate remortgage - your repayments are fixed for a set period
Offset remortgage - you can use savings as part of your mortgage repayments
Interest only remortgage - you only pay the interest on your mortgage each month, repaying the capital at the end of the mortgage term
Lender rates change daily and with a multitude of different remortgage products available it’s near impossible for an individual to compare them all. Using our FREE online mortgage calculator, you can compare the whole of the UK remortgage market in an instant. Use the comparison tool above to compare residential remortgage offers with a selection of over 5,000 market leading deals available right now.