We can help you find your perfect mortgage today...

Telephone: 0800 9701795

0800 9701795

A beginner’s guide to Re-mortgaging

Posted on Friday 22nd June, 2018

What is re-mortgaging?

Re-mortgaging is the process of switching a mortgage to a different lender without moving homes. For many borrowers, it is also the ideal opportunity to review their personal and financial circumstances and to consider whether their current mortgage and lender is the most suitable for them.

What are common reasons to re-mortgage?

Your mortgage deal has already come to an end and you have been placed on your lender’s standard variable rate (SVR)

 

  • Your existing deal is nearing its end and you will soon be placed on your lender’s SVR

 

  • Reduce monthly repayments and gain extra flexibility on your mortgage term

 

  • Borrow more money, possibly for home improvements or to pay off other debts

 

  • Release equity from your home

 

  • The value of your home has increased substantially

 

  • Ensure your mortgage meets your personal and financial needs

 

  • To change to a different type of mortgage

 

What if you want to stay with your current lender?

 

If you wish to stay with the same lender when your current deal comes to an end, you can simply complete a product transfer. This means you will be placed on a new product with your existing lender.

 

Re-mortgage jargon

 

Bank of England Base Rate A rate of interest that is set by the Bank of England. If the base rate rises and your mortgage has reverted to SVR then your mortgage payments are likely to increase.

 

Early repayment charges (ERCs) Fees you may have to pay if you wish to leave your mortgage at a specific time, for example, during the period of the initial deal.

 

Fixed-rate mortgage The initial period of the deal which is usually between one and ten years where the mortgage interest rate remains the same. As a result, you can be certain that you will be paying the same amount each month for your mortgage.
Standard Variable Rate (SVR) A mortgage deal will usually revert to this interest rate when the initial mortgage deal comes to an end. The SVR is decided by the lender and your payments may increase or decrease depending on interest rate movements.
Tie-in period The period of time that you are tied in to your mortgage deal. If you want to leave your mortgage deal during this time you will usually have to pay early repayment charges.
Tracker mortgage A mortgage where the interest rate tracks the Bank of England base rate or London Interbank Offered Rate (LIBOR), depending on the lender

 

 

 

Contact Acorn4mortgages

0800 970 1795

terry@acorn4mortgages.co.uk


Contact us now Let us help you with your mortgage needs →


Our Other Services
What we need to tell you

Your home may be repossessed if you do not keep up repayments on your mortgage.
A fee for mortgage advice will be charged on completion of your mortgage. This fee will typically be £300 up to a maximum of £500. We will receive commission from the lender in addition to the fees you pay. We also offer a fee only option of £1,000 – any commission received would be refunded if you choose this option.

Get in touch

Tel: 0800 9701795
Email: office@acorn4mortgages.co.uk
Skype: acornmold
Fax: 0870 762 7535

Facebook: facebook.com/acorn4mortgages
Twitter: @acorn4mortgages

The Legal Stuff

© Acorn4Mortgages Limited. Registered address: 1-3 The Mall, Ambrose Lloyd Centre, Mold, Flintshire, CH7 1NR. Registered in England & Wales under number 4270415. Acorn4Mortgages - Privacy Notice.

Acorn4Mortgages Limited is an Appointed Representative of Mortgage Intelligence Ltd which is authorised and regulated by the Financial Conduct Authority under number 305330 in respect of mortgage, insurance and consumer credit mediation activities only.

We always aim to provide a high quality service to our customers. However, if you encounter any problems and we are unable to resolve them you can take your complaint to an independent Ombudsman. Our advice is covered under the Financial Ombudsman Service. You may be able to submit a claim through the EU Online Dispute Resolution Platform if you live outside the United Kingdom or if you prefer not to deal directly with the Financial Ombudsman Service.