Residential Remortgage

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?

Post Office

Latest Mortgage Deals…

• From £250 to £1,000 Cashback on selected deals
• Standard valuation of your property paid for

Post Office provide a mortgage repayment calculator where you can work out how much your monthly payments will be – click here for more details »

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.