Remortgaging can be a smart financial move for homeowners looking to save money, access equity or secure better terms on their mortgage. However, knowing when to remortgage and how to find the best deal is crucial to making the most of the opportunity.
At Resolve, we help Reigate homeowners to navigate the remortgaging process whether you’re nearing the end of your fixed term, seeking better rates or juggling a complex income structure.
What is Remortgaging?
Remortgaging involves switching your current mortgage deal to a new one, either with your existing lender or a new provider. Homeowners typically remortgage to secure a lower interest rate, release equity for renovations or adjust the mortgage term for more manageable payments.
When Should You Consider Remortgaging?
- End of a fixed term. Most homeowners opt for a fixed-rate mortgage lasting 2,3 or 5 years. When this period ends, your lender usually shifts you to their Standard Variable Rate (SVR), which is often higher. Switching to a new deal before this happens can save you money. *However, checks need to be made to ensure you are not exiting the mortgage early as there may be early repayment charges if this happens.
- Falling interest rates. If market rates drop, it might be time to explore remortgaging to a lower rate.
- You have a need to release equity. Remortgaging can allow you to access some of the equity built up in your home, which can be useful for funding home improvements or consolidating debts.
- Better Financial Position. If your credit score or income has improved since your initial mortgage, you may qualify for more favourable terms.
How to Find the Best Deal
- Work with a mortgage broker. A local broker, like Resolve Financial Solutions, has access to a wide range of deals, including those tailored for unique circumstances such as contractor incomes. We can help identify the best rates and lenders for you.
- Check your credit score. A good credit score can significantly improve your chances of securing a competitive rate. Tools like Experian or Equifax can help you monitor your score.
- Compare rates and fees. Look beyond the headline interest rate. Consider arrangement fees, early repayment charges and other costs that can impact the overall deal.
- Prepare documentation. Lenders will typically require proof of income, bank statements and details of your current mortgage. Contractors or self-employed individuals should also provide SA302 forms and accounts.
Remortgaging Tips for Reigate Homeowners
- Plan ahead and start exploring options at least six months before your fixed term ends.
- Understanding your loan-to-value (LTV) ratio can help you access better rates.
- If you want stability, a fixed rate may be a good choice.
Why choose Resolve Financial Solutions?
At Resolve Financial Solutions, we specialise in remortgaging advice for Reigate homeowners. Whether you are a first-time buyer, contractor, or established homeowner, our tailored approach ensures you find a deal that fits your needs and goals.
Contact us today if you are looking to secure the best remortgage rates in Reigate. Call us on 01932 943028 or complete our online form here to book your free consultation.
*Please note: Your home maybe repossessed if you do not keep up repayments on your mortgage.