If you’re near the end of your mortgage term and you’ve decided to stay in your current property instead of moving, then it’s probably about time you looked at sorting out that Remortgage.
Remortgages are where you switch to better rates on your current deal. As an experienced Mortgage Advisor in Liverpool, this is something we may be able to help with.
The banks rely on their customers sticking with what they’re comfortable with and not shopping around. It’s not uncommon for there to be cheaper offers for you somewhere else, all you have to do is have a look at a price comparison website or contact a Mortgage Broker in Liverpool to compare deals for you.
If you’ve had your mortgage for a number of years, then you could be on a low Bank of England tracker deal. You may even be paying less than 1%. If this explains your situation, you might be thinking about leaving that mortgage where it is for now. However, your payments will increase when the base rate eventually rises again.
Subject to the usual affordability checks and assuming you have got equity in your property, then it is possible to increase your mortgage for potential home improvements.
This can be a good investment if you’re smart with your money. Often, we see customers do this to cover building an extension or converting their loft into an additional room.
You can borrow extra funds for most legal purposes, examples of this would be:
Remember by increasing your mortgage you will end up paying back more interest, so you need to be certain you are doing this for the right reasons.
It may be a bad idea to add debt onto your mortgage, as you will end up paying back more interest overall by extending the term of your debts to make the payments lower.
You are also taking debt, which is not secured, and securing it on your home. This means you are at risk of repossession if you cannot afford your monthly repayments. Consolidating debts that you can afford or credit cards that are at 0% interest will almost certainly be the wrong thing to do.
However, if you need to reduce your monthly outgoings to avoid missing payments, (which could damage your credit rating), then it might be a something worth considering.
We often find that your current lender will offer you a new deal to stay with them and they may call this a “product transfer” or “retention” product. This isn’t always guaranteed and sometimes you have to contact your provider directly to see what is available for you.
Some lenders allow you to make a product switch online without taking advice or providing further information/documentation.
Whilst it may be easier to stay with the same provider and switch products rather than put forward a new application to a different lender, you may find that you could save a lot of money by doing so.
Also, many banks still offer preferential rates to new borrowers over existing ones. One day, lenders will get their act together and realise that taking a more ethical approach would breed loyalty amongst their customers.