There are of course many reasons why you may wish to consider a re-mortgage, and we have only highlighted the more popular ones. You can of course re-mortgage for any legal purpose, but most clients take the opportunity of raising additional funds to achieve a chosen task.
Now is a very good time to consider a re-mortgage as we have seen the value of property rise in spectacular fashion over the past two years, mainly due to the amount of people who have been, and may in the future, work from home.
We also must consider the financial markets, from which we have a very strong indication that interest rates will start to rise over the next two years as the UK struggles to recover from costs and damage to the economy brought about by COVID Pandemic.
With interest rates still very low, now is the time to take advantage of this situation and look at what the re-mortgage market has to offer you to purchase a holiday / retirement property, or investment property. This has certainly been a very popular reason to raise additional funds as is buying a Buy to Let or HMO property, both of which are seen as a very good long-term investment, with many clients using a Limited Company as the purchase vehicle.
Clients should in always seek professional advice before purchasing a second property to see which option they should use when purchasing and how this may be viewed by the Inland Revenue now and going forward. This is very important subject for clients to be aware of and they should not consider purchasing a second property until they are fully aware of their tax position now, and how the Inland Revenue may view them going forward.
Another of the more popular reasons for considering a re-mortgage is to look at the possibility of consolidating any short term unsecured debts into the mortgage secured on the property. This has become very popular because if it is possible, the interest rate on the new re-mortgage would normally be far more attractive than that being charged on the unsecured debts, with the added advantage of having the mortgage repayable over a longer term. The impact of this being making the serving of the debt so much more affordable with the bonus of additional cash flow.
Think carefully before securing other debts against your home. Your home may be repossessed if you do not keep up repayments on your mortgage
We are of course very happy to help and guide you through the process to make sure that a re-mortgage is the best option for you, makes sense and is affordable. All lenders have their own affordability calculations, and we make sure that you will meet these calculations requirements, in addition to the lenders criteria, at the start of the process.
With our many years of experience in financial services, and our access to the whole of market, we are in an excellent position to make sure that we are placing you on the most competitive terms to fit your credit profile and the lenders underwriting terms.
When we are looking at the market to see where you may fit with another lender on the most competitive terms on the market, in very rare cases your exiting lender may prove to offer the best terms. In this case you would be offered a new product but would stay with the same lender.
If any lender was unhappy with the reason why additional funds were being raised, we would of course look at all your other options to see how the funds could be raised and what terms would be available to you. We would also make you aware if there was likely to be any changes to underwriting in the foreseeable future which may impact on your decision to wait or proceed with the terms on offer.
All our discussions with you are treated in the strictest confidence, and with the utmost discretion, so what have you got to lose?
Why not call us now on 0800 802 1003 for a no obligation chat to see how we can help you. A re-mortgage is a process of changing your mortgage to another lender who can offer more attractive terms than your current lender, which will save you money, and could change your lifestyle.
Homeowners should think very carefully when they want to raise money for home improvements, buying a new car, or for other reasons, you may find that a re-mortgage offers you far more attractive terms than raising funds on a personal loan, using credit cards or other forms of short-term finance.
At A Mortgage 4 You we welcome your enquiries and take greatpride in being able to help clients who may have struggled in the past to secure acceptable terms. With our many years of experience in financial services we see a Bad or Poor credit profile as a challenge not a reason to say no.
Think carefully before securing other debts against your home. Your home may be repossessed if you do not keep up repayments on any loan secured against it