Should I Remortgage Now or Wait?
Mortgage rates are an important consideration because can you remortgage early on a fixed rate is complex. If you remortgage too soon, you might need to pay a fee as high as 5% of your mortgage balance, which might make remortgaging unaffordable.
Still, if you’re looking into can you remortgage to buy another property and need to move quickly, there may be scenarios where the extra cost is worthwhile.
Can You Remortgage Early on a Fixed Rate?
Most lenders will charge an exit fee if you remortgage before the term ends. These normally run for between two and five years, so it is normally best to wait until the term finishes before you remortgage. However, if you’re considering can I remortgage to pay off debt and have credit cards or loans with a high-interest rate, you may still be able to save money by remortgaging.
The best bet is to check your mortgage contract. If you are already on the lender’s Standard Variable Rate, it’s very likely you can remortgage and make a considerable reduction in your monthly outgoings, answering the question of should I remortgage now or wait.
Can You Remortgage to Buy Another Property?
Many homeowners leverage the equity in their homes to buy another, either as a buy-to-let investment, a holiday let, or a second home. Can you remortgage to buy another property depends on the financing you need as a deposit on a second home and the equity you have.
You can also look at remortgaging to release equity for home improvements and other costs, as well as considering can I remortgage to buy another property.
Can My Ex Remortgage Without My Consent?
No, if two people are signees on the mortgage deeds, one person cannot remortgage without notifying the other. Another scenario exists where you have bought out an ex-partner and now own more equity in your property – or have repaid a chunk of the mortgage, or found your property is currently worth much more than when you bought it.
One of the common reasons behind why do people remortgage their homes is that they can remortgage the same value but at a much smaller proportion of the property market valuation, reducing their LTV and achieving more competitive interest rates.
Can You Remortgage to Consolidate Debt or Reduce Your Outgoings?
There are lots of reasons to remortgage, but if you’re interested in can you remortgage to pay off debt, reduce your monthly outgoings, or manage your budget, there are several options. One could be to change from a repayment basis to an interest-only mortgage to help you manage your budget.
Switching to an interest-only mortgage from a repayment product isn't always easy. Still, lenders can often provide flexibility – Revolution Brokers can also recommend the right lenders or products that will help manage your mortgage costs, whether you're worried about should I remortgage now or wait or need to look into can I remortgage to pay off debt.
Can I Remortgage to Buy Another Property to Rent Out?
Purchasing a buy-to-let property with a deposit raised from your equity is certainly possible and often a far cheaper option than taking on short-term borrowing since most rental property mortgages require a 25% deposit.
Can I remortgage my house to buy another? This could be one of the most cost-efficient routes if you have sufficient equity. Lenders will assess your affordability carefully to ensure they are confident you can keep up with the repayments on two mortgages or your remortgage repayments and the interest-only payments associated with your new rental investment.
Why Do People Remortgage Their Homes Around Base Rate Changes?
Interest rates have been a hot topic the last couple of years, and one of the top reasons behind why do people remortgage their homes is because the interest rate on their current mortgage is not competitive, or they want to lock in a fixed term before they expect interest rates to increase.
Banks and lenders use the Bank of England base rate as the calculation bases for the interest charges they offer on mortgage products, so when the base rate rises, so too do the costs of borrowing.
However, should I remortgage now or wait is about more than interest rates. You can also lock in short-term fixed-rate mortgage contracts for 24 months if you are uncertain whether high-interest rates will change soon.
If you’d like any further information about why do people remortgage their homes, whether a remortgage is the right option for you, or should I remortgage now or wait, please get in touch at your convenience with our friendly team.
