Remortgaging simply means changing your mortgage. Whether you decide to switch lenders or choose a different mortgage product with JAG Funding Solutions, you’ll be applying for a new mortgage.
Timing is key to benefit from remortgaging. There are circumstances where it makes sense and others where it could be detrimental.
When to consider remortgaging:
- Your current fixed rate is ending – Fixed rates often revert to higher standard variable rates when the initial deal ends.
- Concern about rising interest rates – Moving to a fixed rate could protect against payment increases.
- Your property value has increased – You may now qualify for better rates due to lower loan-to-value ratio.
- Your mortgage doesn’t allow overpayments – Remortgaging could allow you to overpay.
- You want to borrow more – Remortgaging could allow you to release equity or consolidate debts.
- You want more flexibility – Options like payment holidays may require remortgaging.
- You want to change mortgage type – For example, interest-only to repayment.
- You want to remortgage for home improvements or debt consolidation.
When remortgaging may not be advisable:
- High early repayment charges on current mortgage.
- Small remaining debt – Fees could outweigh savings.
- Worsened financial circumstances – Could impair new application.
- Low or negative equity – Most lenders won’t accept applications.
- Already have a great rate – Unlikely to see significant savings.
What happens if I don’t remortgage? You’ll go on your lender’s (often higher) standard variable rate.
Fees are similar to initial mortgage – Legal, valuation, arrangement fees. Deposits not always needed but can help.
How JAG Funding Solutions can help:
- Advise if remortgaging makes sense based on your circumstances.
- Find competitive products suitable for you.
- Guide on timing and process to avoid extra costs.
- Compare options like new lender vs product switch.
- Handle application through to completion.
