MORTGAGES

Remortgaging

Cut your rate and your monthly payments by switching to a more competitive deal

Remortgaging your Property

Whether you are aiming to consolidate your debts, raise funds for home improvements, find a more competitive monthly payment than your current one, or want to reschedule the terms of your existing loan, HCF Partnership can assist.

Remortgaging can improve your financial situation in many ways. In simple terms, remortgaging involves transferring your current mortgage to a new deal, either with your existing lender or a different one.

Many borrowers prefer to review their mortgage every few years to benefit from new interest rates. Those who remain on the same deal for the entire loan term might end up paying more than necessary. They could also miss the opportunity to clear their mortgage earlier than initially planned.

The core reasons to consider remortgaging are:

To avoid moving home

It can be more convenient and cost-effective to upgrade your existing property rather than moving house. This can be funded through remortgaging or taking out a further advance.

To get a lump sum for a special cause

You may have a wedding or education fees to fund. If your property value has risen, you could release some of the capital to help towards this.

To not lose money unnecessarily

When you take out your current loan, there will be features that make it competitive and appealing to you. It might be that your incentive period is ending, or simply that market conditions have changed.

This could help you save money on your monthly repayments or enable you to repay your mortgage sooner. If your current lender doesn’t offer better rates or more flexibility with its other products, you might want to consider switching your mortgage to a different lender.

You might find it better to do so, even if this results in early repayment charges to your current lender, as it could still lead to a net saving for you. However, it is crucial to seek advice before making any decisions.

To consolidate debts

Remortgaging can help you release equity from your home and combine higher-interest debts, such as credit cards, into a single mortgage payment. While debt consolidation often lowers monthly repayments, making them more manageable, it usually involves extending the repayment period, which can lead to paying more for the debt over time.

CONSOLIDATING DEBT MAY REDUCE YOUR OUTGOINGS NOW, BUT YOU MAY END UP PAYING MORE OVERALL. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE