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Remortgage means you are changing your existing mortgages at your current property, either with new mortgage lender or changing the terms with your current mortgage lender. This also means you are not moviung to a new property and the mortgage is still scured againts your current property.
If your current mortgage agreement ends, you’ll be automatically transferd on lenders standard variable rates, which are typically expensive. Remortgaging can help you find better mortgage interest rates.
If you are currently on a standard variable rate mortgage and affected by a raise in the Bank of England’s base rate, you can find better fixed rate mortgage by remortgaging and also have peace of mind that your rates are locked in for a fixed period of time
You can take equity from your existing property if you looking to raise lump sum for paying other debts or home improvements. This will increase your mortgage loan, but if you have lived in your property a long time the value could have increased so the LTV may not have changed so you can still get great rates
You might be able to find another mortgage lender who allowes you to make over payaments at a greater rate than yout current lender, this can help you save thousands on your mortgage because the interest that you pay on the overall mortgage will be cut because you will borrowing over a shorter period of time. Typically overpayments of 10% of your remaining balance per year is standard.
By remortgaging you can benefit if your property value has increased as the LTV (loan-to-value) would go down and can get better intrestet rates. Equally this is the same if you have been making repayment on the property for a number of years, the LTV will be reduced as you wouldn’t need the original amount you borrowed
Switching to new mortgage deal when yuoe current one comes to an end know as remortgaging. You can switch to new lender or stay with same lender on a new mortgage deal with the same property.
It will depend on your own finalcial situation and lender criteria. Mortgage lenders usually look at your expenditure, income and credit history to decide howmuch they can lend you.