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Be prepared for when you should remortgage

Be prepared for when you should remortgage

Remortgaging is a valuable opportunity for you and your adviser to look at what you’re paying, assess your circumstances and look in to what you can afford going forward. A good adviser will be in touch with you when your fixed term rate is nearing its end. There are many reasons why you may need to remortgage such as to free up equity to carry out home improvements; reduce your monthly mortgage payments; and consolidate your debts into a single affordable monthly payment.

They’ll be able to advise you on what’s the most appropriate mortgage to choose rather than you languishing on a lender’s standard variable rate, potentially paying more than you need to. It’s worth remembering that if you only have a small mortgage left to pay off, it may be cheaper to stay with your current lender than pay to switch to a new lender’s fixed rate terms.

In so far as consolidating your debts into a single affordable monthly payment, it’s worth remembering that this isn’t always suitable for everyone. When you add loans to your mortgage, it’s important to understand the risks. Adding short-term loans to your mortgage means you’ll repay them over a longer term. Unsecured loans are generally paid back over a shorter term than mortgage loans. While the interest rate on your mortgage may be lower than you pay on your loans, by adding them to your mortgage you’re likely to pay more over time.

Earlier in the year, the financial regulator introduced new rules following its review of the mortgage market meaning you’ll have increased consumer protection and it ensures lenders act responsibly. This could well mean that the application process is a lot longer than it was when you initially took out your mortgage as you may well be required to provide a lot more detailed information and you’ll be questioned in depth about what is most suitable for you. It’s to your benefit though that this takes place to ensure you’re realistically able to afford to repay what is ostensibly a large loan.

Guidance on this process and what’s involved from both sides is available through the Money Advice Service. You’ll need to show evidence of income such as your payslips and bank statements; outgoings such as household bills; and living costs such as travel, clothing and entertainment.

Think carefully before securing other debts against your home.

Your home may be repossessed if you do not keep up repayments on your mortgage.

The Mortgage Shop

Important Information

Important Information

Your home may be repossessed if you do not keep up repayments on your mortgage.

Typically we do not charge a fee for mortgage advice, however if we do, depending on your circumstances, it will be a maximum of £250.

As with all insurance policies, conditions and exclusions will apply.

Disclosure

The Mortgage Shop (N.I) Ltd is an Appointed Representative of Stonebridge Mortgage Solutions Ltd, which is authorised and regulated by the Financial Conduct Authority Registered Office: The Mortgage Shop (N.I) Ltd, 132 Great Victoria Street, Belfast. BT2 7BG. Registered Company Number: NI26842. Registered in Northern Ireland.