For most people buying a property is the biggest financial commitment that they’ll make in their lifetime and this is oftentimes only possible with a mortgage from a bank or specialist lender. There are several different mortgage types available suited to different scenarios, from Buy to Let and Commercial to Residential and Bridging.
In this article, we will be discussing the benefits of a remortgage.
What is a Remortgage?
A remortgage is a financial product that is used on a property that you already own, either to replace your existing mortgage or to borrow additional money against your property.
You can remortgage a residential, buy to let or commercial property. This means everyone from first-time buyer to professional portfolio landlord can remortgage their property, subject to affordability.
Possible Scenarios & Benefits of Remortgaging
There are many scenarios in which you can remortgage and this may bring you benefits which we have outlined below:
Your present mortgage deal is coming to an end – Ordinarily, your mortgage has an introductory period, for example, a 2 year fixed rate. These introductory periods are often set at competitive rates, however, at the end of the period, you will be automatically shifted onto the lenders’ standard variable rate. The standard variable rates are likely to be higher than the fixed-rate deal you originally had in place. In this scenario, you should speak to our mortgage experts who can help you arrange a product switch or help you remortgage to a more competitive rate.
You need to release equity – If you purchased your property 3 or more years ago, it is likely, you are now in a healthy positive equity situation. What this means is that your property value has increased and so there is an opportunity to free up some of the additional cash by remortgaging your property at a higher value. This type of remortgage can allow you to free up cash to make home improvements like a loft conversion or extension.
Before embarking on a remortgage you should consider any early repayment charges or exit fees that may be attached to your current mortgage terms.
At Unique Property Finance we can have access to the whole market and can, therefore, find a competitive mortgage that suits you best. Contact us now for a no-obligation discussion on 020 3645 4322 or visit our website at https://uniquepropertyfinance.co.uk where you can request a callback.
YOUR HOME OR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.
About The Author: Sunny Budhdeo
With a career that spans over 20 years, Sunny initiated his journey in the mortgage industry as an adviser at the prestigious estate agency Barnard Marcus. He quickly gained recognition for his expertise, particularly in specialist finance, focusing on complex buy-to-let loans and bridging finance. As the Co-Founder of Unique Property Finance, Sunny has become a linchpin in the industry, adept at solving intricate property finance issues and fostering strong relationships with lenders.
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