As a homeowner, it’s inevitable that the introductory period of your mortgage will eventually come to an end. Like many homeowners, you might be contemplating the option of remortgaging your property.
Is remortgaging right for me?
The decision to remortgage in Middlesbrough depends on your specific goals and aspirations. While many homeowners see it as a natural progression to enhance their lifestyle or maximise the potential of their property, it may not be suitable for everyone.
At our dedicated remortgage advice team, we take the time to thoroughly assess your situation, understand your objectives, and determine if remortgaging is the most suitable path for you.
We believe in providing transparent service, so if it’s not the right option for you, our mortgage advisor in Middlesbrough will openly communicate this and explore alternative solutions if available.
Why do people remortgage in Middlesbrough?
Naturally, when it comes to any mortgage decision, thorough consideration is essential. There are numerous factors that may influence someone’s choice to remortgage their home in Middlesbrough as their introductory period draws to a close.
To Avoid Any Increases in Mortgage Payments
In recent times, one of the primary reasons homeowners consider remortgaging in Middlesbrough is the anticipation of rising interest rates. While historically interest rates are lower than they used to be, the likelihood of them increasing is higher than decreasing.
Therefore, it can be advantageous to remortgage as soon as possible and secure a fixed rate for a specific duration. Most individuals opt for 2-5 year fixed rates, although longer-term options may also be available.
By doing so, you can take advantage of the current low rates and potentially save a significant amount of money in the long run, even if interest rates rise during that time.
For a Better Rate
Sometimes the motivation to remortgage is not driven by rising interest rates, but rather the desire to access a better rate that may be available to you. Over time, as equity builds within your property and its value increases, you may qualify for a lower loan-to-value ratio.
This improved equity position enables you to secure more favorable rates, potentially leading to cost savings or a shorter mortgage term, if that aligns with your goals.
For Home Improvements
Additionally, some homeowners choose to release equity through their remortgage in Middlesbrough as a means of funding home improvements, modifications, or renovations.
Rather than moving to a different property, they prefer to enhance their current home, where they have established a life and potentially raised or plan to raise a family.
Popular choices for utilising released equity include renovating the kitchen, creating a home office, adding an extra bedroom, expanding living spaces, constructing a conservatory, and more.
Not only do these enhancements cater to specific needs, but they can also increase the property’s value, which can be beneficial if you intend to sell in the future.
To Consolidate Debt
Throughout the duration of your mortgage term, you may have accumulated unsecured debts that have made it challenging to manage all your payments effectively. While it comes with certain risks, many homeowners opt to remortgage in Middlesbrough for the purpose of debt consolidation.
Debt consolidation involves merging all your unsecured debts into your mortgage, resulting in a single monthly payment. This approach offers several benefits, including freeing up more funds each month and reducing the number of outgoing payments you need to manage.
Additionally, consolidating your debt extends its repayment duration over the course of your mortgage, which means you’ll end up paying more in overall interest.
It’s important to carefully consider the pros and cons of this strategy, as while it can provide short-term relief and simplify your finances, it may result in a higher total interest cost in the long run.
Consulting with a professional mortgage advisor in Middlesbrough can help you assess the viability of debt consolidation through remortgaging and explore alternative options based on your specific circumstances.
You should think carefully before securing other debts against your home. By adding your unsecured debts to your mortgage, which is secured on your home, you are potentially putting your home at risk if you cannot make the required repayments.
Although the total monthly cost of servicing your debt may have reduced, the total cost of repayment may still have risen as the term of your mortgage is longer than it may have taken to repay the debts originally.
Alternatives to Remortgage in Middlesbrough
Before your introductory period ends, it’s crucial to seek remortgage advice in Middlesbrough to determine the best course of action for your specific situation. Consulting with an expert in the field will help you make an informed decision.
Your mortgage advisor in Middlesbrough may suggest a product transfer as a more suitable option. This involves obtaining a new mortgage deal with your current mortgage lender, which can be beneficial if you’re content with your current property but seeking a different mortgage product.
On the other hand, if you’re looking for a new home with more space, moving house might be the better choice. In rare cases, falling onto your mortgage lender’s Standard Variable Rate (SVR) of interest may be considered, although this is typically more expensive in terms of monthly mortgage payments.
If you’re aged 55 or above and your property is valued at £70,000 or more, it may be worth exploring equity release options with a qualified later life mortgage advisor in Middlesbrough.
They can provide valuable insights into lifetime mortgage options, discussing the advantages and disadvantages associated with them.
Take advantage of our online booking feature to schedule a free remortgage review today. During this review, a trusted and experienced mortgage advisor in Middlesbrough will thoroughly assess your circumstances and provide clarity on the most appropriate option for you.
To understand the features and risks of equity release and lifetime mortgages, ask for a personalised illustration.
A lifetime mortgage may impact the value of your estate and it could affect your entitlement to current and future means tested benefits. The loan plus accrued interest will repayable upon death or moving into long term care.
Date Last Edited: May 30, 2023
