20 Feb 2019
Reasons to Remortgage Your Property in 2019
With the threat of Brexit looming on the UK, many homeowners are asking what will happen to the mortgage and property market in 2019. However, there is another question that homeowners should be asking themselves and that is "should I remortgage my property in 2019?". The answer is pretty simple, Yes. With rates at an all-time low, now really is the time you should be looking at re-mortgaging. Mortgages Online have created this blog post to help you understand the benefits of remortgaging your property and why you should take the step this year.
Re-mortgaging Is More Popular Than Ever
According to Virgin Money, there are 750,000 mortgages due to mature in the UK in the first half of this year alone. Furthermore, they found that there are almost 185,000 households that will be looking to re-mortgage for the very first time, which is a 10% increase on the first half of 2018. This provides mortgage brokers with an opportunity to help homeowners through the re-mortgaging process and provide them with more options and better mortgage rates to choose from.
Reasons Why You Should be Considering Re-mortgaging
- You Want to Borrow More Money
Remortgaging your home can allow you to release some of the equity (cash) that you have built up over the years. Maybe you are looking to fund some home improvements or buy a new car. If so, remortgaging can be a great way in order to raise the money. However, before increasing your debt further, it is essential that you seek professional advice together with doing your own research. If you are curious about remortgaging, then why not try our remortgaging calculator to see how much money you could save.
- You're Looking for A Different Type of Mortgage Deal
The most suitable mortgage for you is one that best matches your personal and financial circumstances. And, like both, can change at any time. Maybe you would like to move over to a longer fixed term to secure a rate, or you’re in the position to make some overpayments on your mortgage.
- You Are Approaching the End of Your Current Mortgage Deal
If your current plan is a fixed-rate mortgage and its introductory period is coming to an end, then it’s a good idea to remortgage before you are automatically transferred onto your lender's Standard Variable Rate, which can cost you considerably more money each month.
- You Are Currently On a Higher Loan-to-Value Mortgage
As years go by and you continue to make your mortgage repayments, you will build up equity in your property. This means that, as time goes by, the amount you owe on your mortgage goes down and, in turn, the amount of equity you have in your property goes up. If you took your mortgage out on a high loan-to-value product, by taking into consideration you have been building up equity and house prices have risen, then it could be possible to remortgage at a lower LTV ratio than the original loan that you took out. This is beneficial as the higher your loan-to-value, the higher risk you are to the lender, so by reducing the loan-to-value, reduces the risk factor and therefore reduces the interest rate you will have to pay. The great thing about it is that you don’t notice it happening and you end up with a significant financial asset that you can use for just about anything.
When to Apply for a Remortgage
It is important to speak to a professional to carry out research before applying for a remortgage, as you may not need to wait until the end of your tie-in period to be able to financially benefit from remortgaging. It is also key to bear in mind that the average remortgage takes around 1-2 months from submission to completion, so it is vital to get a new application a few months before the end of your redemption period. So, we recommend that if you are looking to remortgage your property, then it’s better to get the process going sooner rather than later.
At Mortgages Online, we can help find you the best mortgage deals on the property market. Whether you’re looking to use remortgaging for home improvements or to save some money on your monthly repayments, we’re here to make your life easier. If you would like to use us as your online mortgage broker, then please visit our Application page to see how much you could save.