Remortgages
When Life Changes or When Your existing Mortgage Deal Ends
When Is the Right Time to Think About a Remortge?
Your Fixed Rate Is About to Expire
If your fixed rate mortgage is nearing its end, don’t get stuck on your lender’s Standard Variable Rate (SVR) – it can be a sharp rise! Many lenders allow you to start exploring new options up to six months before your rate ends, and it’s a good idea to begin the process early so you’re not left with limited choices.
Interest Rates Have Gone Down
If market interest rates have dropped since you first took out your mortgage, now could be the perfect time to remortgage with
Aviella Mortages. Even a small reduction in your rate could lead to significant savings on your monthly payments, helping you put money back in your pocket.
The Property Value Has Increased
If your home’s value has gone up, or you’ve paid off a chunk of your mortgage, your Loan-to-Value (LTV) ratio may have improved. This could unlock access to better deals and lower rates that weren’t available when you first took out your mortgage.
You Need Extra Funds
Whether it’s for renovating your home, consolidating debt, or funding something important in your life, remortgaging can be a smart way to access the equity you’ve built in your property. It can often be a cheaper alternative to other forms of borrowing.
Your Situation Has Changed
Life changes, and your mortgage should reflect that. Whether you’ve had a change in job, family, or income, remortgaging could help adjust your loan to better suit your new financial circumstances and goals.
Is Remortgaging the Right Choice for You?
While remortgaging can offer great benefits, it’s not always the best option for everyone. Even if a new lender offers you a lower interest rate, it’s important to consider the full picture:
Additional Costs: Switching to a new lender could come with extra costs like valuation fees and solicitor charges, even if you’ve already paid these with your current lender. Some include these free but it’s important to know this before committing.
Check the Overall Term: If you’re looking to reduce your monthly payments, it’s crucial to check the full term of the new mortgage. You may pay less each month, but don’t forget to look at the final repayment date, an extended term could cost you more in the long run.
Early Repayment Charges: Keep in mind that remortgaging could trigger early repayment fees from your current lender, which could offset any savings you make from the lower interest rate.
It is important to be cautious when securing other debts against your home. If you miss repayments on your mortgage, your home could be at risk of repossession.
Sometimes, your current lender may offer a better deal than switching, a product transfer. We can help with this too, finding the best deal to suit your needs with your current lender.
In some cases, consolidating debt into your mortgage might seem appealing, but remember it could lead to higher interest costs over a longer period, plus and you may have an early repayment charge to your existing lender to consider.
We are here to help you
We are here to guide you through every possible option and help you find the best solution for your financial situation.
If you’re dealing with significant debt, it might also be worth exploring other support options, like free debt advice charities.
The Money Advice Service is a good place to start, as they can offer alternative solutions that might be better suited to your needs.
