Beginning your mortgage journey can come with its up and downs, however, the overall process is a rewarding one.
You have achieved a life goal of owning your own home and can set you up for any future goals for yourself like having children or starting a family. In particular, as a First Time Buyer in Harrogate, getting the keys to your first home can be a huge financial achievement.
Your reason for owning may be that you are wanting a sense of security and somewhere to call yours. From this, you have found that a mortgage is cheaper than renting.
Regardless of the hurdles and challenges, you may have along the way, you will inevitably end up further onto the property ladder or in a position to make an investment purchase to provide some further income.
A remortgage is when you apply to take out a new mortgage product on a property that you already own to either your current mortgage or borrow additional money against your property.
If you are wanting to take out a new mortgage product with your current lender, you can negotiate this which is known as a product transfer.
Regardless of whether you are looking to remortgage or take out a product transfer you will find that a lot of products out there all have their own collection of different deals and rates available.
Like with many products, there are always the ones most people go for and this is the case with remortgage products that are accessible to many homeowners, further down the page we have highlighted the most popular ones.
You may be wondering when is the time for a remortgage. It might be as simple as your circumstances changing or it could be that you are looking at securing a better deal, funding home improvements, consolidating debt or releasing equity.
Usually, a fixed mortgage term lasts between 2 and 5 years. At the time, you will be paying off some interest and capital and when it comes to your remortgage, 2-5 years down the line, you may be able to qualify for a lower loan to value bracket. By doing this, you are open to better rates.
Alternately, you may find yourself not wanting to remortgage, but this can mean you are risking yourself going onto a lender’s standard variable rate of interest (SVR).
This is something you progress onto if you have decided not to remortgage and can be a risk because you could be paying much higher than what you currently are. If you remortgage before this happens and you fit into a better loan to value bracket this could open opportunities for a better rate saving you money each month.
In the case you have been placed on a tracker mortgage, you will find that your monthly payments and interest corresponds with the Bank of England’s base rate. This can fluctuate depending on the economy’s performance.
For instance, if the economy has dipped, base rates may lower, and vice versa. It can be common for Lenders to have an additional percentage onto this base rate that you are normally tracking a rate between 2-4%.
If you have been on the property journey and are settled into your new home, you might look at giving your property some home improvements like a new extension, conversion or redecorating. Remortgage can be an option for you to get this work done through the funding of the remortgage.
Before carrying out any of these home improvements, you will need to have estimated costs and have some idea of how much it will cost you. From this, you can include these costs into your mortgage when taking out a new product. Depending on what your home goals are, your monthly payments may increase.
Whether if you are looking to start having children/starting a family, want to add value to your home or add some home improvements, we would recommend remortgaging instead of going through the process of having to sell and buy a property simultaneously. It can be easier to improve your current home.
You could be looking to Remortgage to extend or shorten your term and switch to a more flexible product which will lead to paying off your mortgage quicker. The negative to this is that you will have higher repayments but extending your term does mean that you will reduce your payments and be paying off your mortgage a lot louder.
You do have the option to extend your term during this process. If you shorten your term, it will lead to overpaying which results in your mortgage being paid off quicker.
A flexible mortgage may sound like a good choice, however, it usually correspond n the form of a tracker mortgage. As mentioned, a tracker mortgage works with the Bank of England’s base interest rate, which fluctuates depending on the economy’s performance.
Equity is a way of releasing money from your home with the amount being the sum still owed on the mortgage and the property’s current value. Equity will likely build up the longer you have owned the property. As time goes on, you will be able to remortgage release some of this equity to turn into a lump sum of cash.
What you do with the cash is up to you, some uses include people putting down another deposit on another home to help a family member.
Through our experience as a Mortgage Broker in Harrogate, we usually see that Buy to Let landlords release equity to put down a deposit onto another property to expand their portfolio.
For homeowners who are over the age of 55 and have a property valued at a minimum of £70,000, it may be worth your time looking at your options for Equity Release in Harrogate. Get in touch with a trusted later life mortgage advisor to learn more about lifetime mortgages.
To understand the features and risks, 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 be repayable upon death or moving into long-term care.
In some cases where you have built up some unsecured debt, you can incorporate this into your mortgage. Debt consolidation can be seen as a complex topic so, speaking to a Mortgage Advisor in Harrogate can be beneficial for you to understand this subject.
Debt consolidation is based on the amount you owe, your property value and your credit rating. Remember, that you need to consider the large sums that will be included into your mortgage which will result in your total mortgage amount increasing.
Please don’t hesitate to contact us if you have bad credit and are seeking help from a mortgage expert. Here at Harrogatemoneyman, our team can help you with your needs and circumstances.
If you are at the remortgage stage in your property journey and are coming to the end of your fixed mortgage term, our team can help get prepared for this and aim to take the stress away by doing it for you.
It’s best to start looking into deals 6 months before your deal ends.
Book yourself in for a free remortgage appointment online with one of our knowledgeable advisors in providing Remortgage Advice in Harrogate. Our team can help you through your process by finding you the most appropriate deal that fits well within your personal and financial circumstances.