REMORTGAGES

Assisting clients remortgage their properties forms a major part of our business. We have a team of dedicated remortgage specialists who can source you the best deal on the market, one suited to your individual needs.

Remortgaging is a great way of keeping ahead of your finances as your circumstances can change over the course of your mortgage term. We frequently find clients who have had their mortgage for a long time, see a considerable decrease in their monthly payment after using our service.

We can take care of the entire process for you, from the completion of the documentation, the instruction of valuations to the liaison with our specifically chosen panel of solicitors.

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REMORTGAGE TO GET A BETTER RATE

This is by far the most popular type of remortgage and can help you reduce your loan repayments by hopefully switching to a better rate.

REDUCE THE LOAN TO TERM VALUE (LTV)

Other reasons for a remortgage could be to reduce the loan to term value (LTV). This could be achieved if your property has increased in value or you have a large lump sum to put towards your mortgage.

PREVIOUS CREDIT ISSUES

You may have had credit issues in the past which are now resolved and because of this you might have been placed with a sub prime lender and can now look at better or more mainstream mortgages.

REMORTGAGE TO GET MORE FLEXIBILITY

Not all remortgages are about saving money, some are about better flexibility, or even both!

You may have accumulated savings and would like to switch to an offset mortgage, or you may want a product that lets you take a payment holiday. Most commonly, your personal situation may have changed and you may want more flexibility over your finances.

OUT OF THE MORTGAGE TERM

You may be out of your mortgage term and on the lender’s standard variable rate (SVR). If this is the case, a remortgage is a must as you will most definitely be paying more in this scenario.

REMORTGAGE TO PAY MY HELP TO BUY LOAN

We help many people remortgage their property to repay all or part of their Help To Buy (HTB) Government loan before interest becomes due. This is very similar to the above, but the funds are only used to clear the government loan.

REASONS TO REMORTGAGE

There are various reasons why you might want to remortgage, below are a some examples.

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REMORTGAGE TO BORROW MORE MONEY

If you are looking to release capital tied up in your home then a capital raising remortgage could be the answer.

You may already have a low LTV such as 40% - 50%, or your property may have increased in value over time meaning the LTV has decreased. Either way, you would have additional capital you could raise funds on.

An alternative to this could be a second charge loan, we will discuss this with you to make sure you are getting the best outcome depending on your needs.

This sounds like a great idea to free cash tied up in your home, but it can also have its draw backs. For example, you will be in debt longer which will cost you more in interest, your monthly repayments will increase and insurance linked premiums could also go up.

You can spend the capital raised for almost any purpose, however some lenders restrict what they will lend for, for example most don't like to fund tax bills.

We would always recommend you take professional advice, here at Cedar Crest we will take the time to explain the pros and the cons to make sure you are well informed and can make an informed decision.

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REMORTGAGE FAQs

WHAT IS REMORTGAGING?

Remortgaging simply means changing your mortgage deal by switching to a new lender or getting a better deal from your current lender.

WHEN IS THE BEST TIME TO REMORTGAGE?

You would need to usually have had the mortgage for at least 6 months before you can remortgage and at the very least, you shouldn't remortgage until the end of any Early Repayment Charge (ERC) penalties have passed. You can still remortgage within your ERC penalty period but this means you will pay more in the long run.

We recommend you start looking around 3-4 months before the end of your current deal. However, we can look at a remortgage at any time, and will always advise you on the best options and whether it’s worth switching early.

If you are out of your current deal and are paying the lenders standard variable rate (SVR) you should contact us.

HOW MUCH COULD I REMORTGAGE FOR?

The amount you can remortgage depends on your regular financial commitments and the loan to value (LTV) ratio.

Lenders don't usually like to go above a 85% LTV on a remortgage which means you may not be able to borrow more than 85% of your property’s value via a remortgage.

As an example, if your property is valued at £200,000 and your current mortgage is £150,000 you will have a LTV of 75%, this means you could borrow an additional £20,000 which would take you to 85% LTV.

CAN I REMORTGAGE MY BUY TO LET?

Yes! In the same way as you would remortgage a residential property, the LTV's on a Buy To Let do tend to be lower with many lenders not wanting to loan over a 75% LTV.

OUR MORTGAGE TOOLS

MORTGAGE GUIDES & MAGAZINES

Our FREE guides and magazines focus on key topics, news and updates related to the UK property market to assist you on your next property or home purchase.