Warning: Late repayments can cause you serious money problems. For help, go to moneyadviceservice.org.uk
Representative Example: On an assumed loan amount of £750 over 12 months. Rate of interest 292% (fixed). Representative 171%APR. Total repayment amount £1351.20 and total interest is £601.20. 12 monthly payment of £112.60.** We do not know how many customers take out a loan or the APR, this calculation is based on the mean APR of the lenders we work with
A remortgage simply means to get a new mortgage, either with the same or a different provider. Mortgages are portable so you can move to different providers and this is a very common thing for people to do.
Most mortgages come with an introductory offer which can give you a lower interest rate for the first few years, but when this expires, you can often be put on a much higher standard variable rate (known as an SVR).
The majority of British homeowners automatically get moved onto their SVR, but do not realise that the savings could be enormous if they remortgage. In fact, the average UK household could save up to £4,000 on their annual mortgage payments if they got a better remortgage deal. A remortgage could come with much better terms and a new introductory offer that you can take advantage of.
At My Financial Broker, we work with over 100 mortgage providers in the UK, helping you compare remortgage deals across the whole of the market and find the best option for you. You can use our remortgage calculator to enter your current home value and mortgage balance and we will be able to provide you with some indicative quotes.
- If the introductory offer on your existing mortgage is ending
- You own more of your home or have a better credit profile
- You want to borrow more money through your home
If your introductory offer on existing mortgage deal is coming to an end, the monthly rate you pay could very easily double or triple if you are moving onto the standard variable rate. This is a great opportunity to look for better deals and introductory offers for the next 3 or 5 years.
You may also be in a better financial position, such as paid off more of your home or have a higher income or better credit score. This would also entitle to you to more favourable rates for your mortgage, rather than being stuck on the same terms for 25 years.
You can also compare remortgage deals to borrow more money, using your home as collateral. The cost of the loan is factored into the overall mortgage repayments and paid off each month over the loan term.
You may hear people say that they will need to remortgage to pay for a large expense or start a business – and this is very common.
As part of the remortgage application, you are able to borrow extra money, secured against your home, and this can be used for any purpose.
People might remortgage their home to pay for school fees, weddings, cars or to stay on top of bills.
For those with outstanding debts such as credit card bills, personal loans, student loans and other debts accumulated over the years, you can pay this off using a debt consolidation loan. Accordingly, you can take all your existing debts and include them into your mortgage payments, so that you are paying off your home and all your debts through one repayment each month. You can use a remortgage for debt consolidation purposes, and find a more cost effective way to pay off your debts and eventually become debt free. Be sure to speak to your chosen provider directly for more information.
Getting a remortgage with a bad credit history can be trickier as the eligibility for a remortgage is usually a little tougher than a mortgage anyway. Mortgage providers will want to see proof of regular payments made on time – so provided that your credit score is getting better (and not worse) and you do not have too many other outstanding loans, you can still be successful with your application. We work with such a diverse range of mortgage providers that some specialise with poor credit histories – so you should be able to get the assistance you need. For more information, see remortgages for bad credit.Apply Now