When considering remortgaging in Cambridge, you’ll encounter a range of options. You might simply be seeking a new product for your property, or you could be interested in remortgaging to access equity, consolidate debt within your mortgage, or fund home improvements.
Remortgaging for home improvements is a popular option among property owners who would prefer to invest in their current home rather than move home. The costs of moving home often outweigh the costs of investing in your current home, hence making the idea of remortgaging for home improvements more appealing.
When you remortgage for home improvements, you are simply increasing your mortgage loan to incorporate the costs of the improvements into your mortgage.
An example would be that you want to turn your spare room into a home office and rather than forking money out of your savings, you add the costs of these improvements into your mortgage. Your mortgage will increase by a small amount, meaning that you will have to pay slightly more on your monthly repayments.
Depending on how much work you have carried out on the property, will factor into how much you will have to pay back each month.
There are lots of reasons why someone may want to remortgage for home improvements in Cambridge. Your property may be showing shows signs of ageing and could need improving in areas, or your family could have grown, requiring you to create more living space. Alternatively, you might want to transform your garage into a gym or convert a bedroom into a home office.
Everyone’s situation and motive is different for remortgaging in Cambridge and investing in home improvements. Some people may even want to invest in a bar in their back garden.
Before you can work out how much you are going to be paying back each month for your home improvements, the mortgage lender will need you to provide a quote of the costs of the work being carried out. This way, they can establish how much extra you need to borrow and how much extra you will need to be paying back each month.
As a mortgage broker in Cambridge, we can help you work out these costs and provide an estimate of how much you will be paying back each month.
For those that own a buy to let property in Cambridge, you may have the option to remortgage for home improvements. If want to improve your property without releasing equity from the property, you can incorporate some of the costs of the works into your buy to let mortgage.
Of course, this is not for everyone and some landlords will find that they can fund the improvements themselves. It is also down to personal preference and what is within their budget.
If you do not want to incorporate the costs of the home improvements into your property, you could perhaps look into taking out a personal loan. This, however, could become more costly than home improvements. When you remortgage for home improvements, you will pay off the costs of the improvements with your mortgage, over the length of your mortgage term.
Personal loans also come with high interest rates, meaning that you will end up paying back more than what you originally took out for your home improvements. Personal loans also typically come with a fixed repayment period. This means you’ll need to repay the loan amount, along with the interest, within a predetermined timeframe. The repayment period can range from a few months to several years, depending on the terms of the loan.
Our remortgage advisors in Cambridge can look at your remortgage options with you and help determine which is the best route for you to take. We will look at your current personal and financial situation to make sure that you are doing what is best for you.
Getting remortgage advice in Cambridge has never been easier! You can easily book your free mortgage appointment online by using our online appointment booker. Choose a date and time that best suits you and speak with a mortgage advisor in Cambridge today.
The time in which it takes for the remortgage process to be completed, entirely depends on the case. Your mortgage advisor in Cambridge will always do their best to get you towards the finish line as quick as possible.
There isn’t a set way to guarantee that your process will go quicker, though if you’re hoping to get a deal done as quick as possible you may prefer taking out a product transfer. This is where you take a new deal but with the same mortgage lender, without being subjected to all the extra checks.
When you are nearing the end of your current deal, it is important that you give yourself enough time to prepare for your remortgage in Cambridge process in the months prior. This helps you to avoid lapsing onto your mortgage lenders Standard Variable Rate (SVR).
A Standard Variable Rate generally will be seen moving in line with the Bank of England base rate, though it will be set at a rate that is decided by the mortgage lender, usually at a percentage above the base rate.
If you get your timing right ahead of your deal ending, you’ll move onto your new mortgage deal just as your old deal is set to end, avoiding the inevitably more costly Standard Variable Rate.
When you decide to remortgage in Cambridge and switch to a new mortgage lender, it is important to understand that this will be treated as a fresh mortgage application.
Your new mortgage lender will request comprehensive financial information from you, including details about your income, expenses, and the property you intend to remortgage in Cambridge.
The application process for a remortgage in Cambridge can be time-consuming since it involves a thorough evaluation and underwriting procedure.
Unlike purchasing a new property, you won’t have to deal with delays caused by a property chain or wait for solicitors to conduct searches. Nevertheless, solicitors will still play a role in facilitating the remortgage process.
When you initially obtained your mortgage, you may have secured a favorable deal. The mortgage market is dynamic, and new offers continuously emerge. Consequently, it’s possible that there are currently better deals available that could result in monthly savings for you.
As market conditions evolve, exploring your options for a potential remortgage in Cambridge could be beneficial in securing a more advantageous financial arrangement.
Instead of enduring the stresses associated with moving to a larger or recently renovated property, some individuals opt to release equity by remortgaging.
By doing so, they can access capital that can be utilised for home improvements, such as adding an extension or renovating the kitchen, among other upgrades.
This approach offers the advantage of improving the current property instead of going through the process of relocating, particularly if you are content with the local amenities and have established a sense of comfort and familiarity in your current home.
It allows you to enhance your living space and tailor it to your preferences while maintaining the benefits of your existing location.
To ensure that your mortgage payment does not transition to your mortgage lender’s Standard Variable Rate (SVR), we advise seeking remortgage advice in Cambridge at an early stage.
It’s worth noting that in certain situations, being on the mortgage lender’s SVR may be a more favorable option, and we can explore this possibility for you.
You can schedule a free remortgage review with our team, where we will dedicate our efforts to streamline and expedite the remortgage process, making it faster and smoother than your initial mortgage experience.
We aim to provide you with the necessary guidance and support to secure the most suitable remortgage solution for your needs.
Taking out a remortgage in Cambridge can be a great way for a homeowner to potentially save money on their money payments, or access funds that are sitting within their home. This can be done usually by remortgaging to release equity.
The vast majority of homeowners will generally start their remortgage process around 3-6 months prior to their current deal finishing. Despite this, there are always homeowners out there that are unsure if they are able to remortgage in Cambridge during a fixed term, earlier than many normally would.
A fixed term mortgage allows you to maintain regular monthly payments for a specified period, usually lasting from two to five years, with an unchanging interest rate. In this article, we will investigate the feasibility and advisability of remortgaging in Cambridge while under a fixed term.
Homeowners in Cambridge will generally look to remortgage their property about 3-6 months before their current deal expires.
This time frame allows a mortgage broker in Cambridge to perform their job effectively and ensures a smooth transition as your new deal becomes ready just as the old one finishes.
This approach also helps you avoid falling onto your mortgage lender’s standard variable rate of interest (SVR), which is often much higher than the Bank of England base rate and can fluctuate solely at the discretion of the mortgage lender.
Remain cautious of these deals as they are usually more costly, and are likely not your optimal choice.
Your mortgage advisor in Cambridge will use the period before your current deal ends to search for better alternatives that suit your requirements and objectives, such as remortgaging in Cambridge for home improvements.
It is possible to remortgage in Cambridge during your fixed term, but if you do so while the fixed term is still ongoing (and before the usual 3-6 months prior), it would be considered as remortgaging early.
Technically, you can do this, as there is nothing stopping you from applying for a new mortgage deal, however, it’s important to keep in mind that there are usually penalties associated with breaking a fixed term mortgage contract.
This means that if you choose to remortgage early, you will likely be subject to early repayment charges from your mortgage lender. These charges can be quite high, and may offset any potential savings you might make by switching to a new deal.
Therefore, before you decide to remortgage in Cambridge during your fixed term, it’s important to weigh up the potential benefits against the costs.
You should speak to a mortgage advisor in Cambridge to help you determine whether it makes sense to switch deals early or whether it would be better to wait until your fixed term comes to an end.
They will be able to give you tailored remortgage advice in Cambridge based on your individual circumstances and financial goals.
Determining whether it is beneficial to remortgage during your fixed term ultimately depends on your financial goals and situation.
It is always recommended to get mortgage advice of a qualified mortgage advisor in Cambridge before making any decisions. Remortgaging is typically only pursued if there is a compelling reason to do so.
There are several popular reasons for remortgaging in Cambridge, including securing a better deal if you are currently paying a higher interest rate than what is available on the market, as well as protecting against potential interest rate increases and inflation.
Whilst this is the case, it is essential to carefully consider the long-term financial implications of remortgaging during your fixed term, as early repayment charges can be expensive.
It is important to determine whether the potential benefits of remortgaging outweigh the costs, or if it is better to wait until your fixed term has expired.
We would recommend that you try to avoid remortgaging early due to the possibility of any early repayment charges.
Depending on how early you choose to remortgage, these charges could end up being quite high. The cost of early repayment charges tends to increase the earlier you choose to take out your remortgage in Cambridge.
On the other hand, if you determine that remortgaging early is financially beneficial in the long run, despite the charges, then it could be a good option for you.
We highly recommend speaking with a mortgage advisor in Cambridge beforehand, to assess whether remortgaging early is the best decision for your circumstances.
While remortgaging in Cambridge usually entails taking out a new mortgage with a different mortgage lender, it’s worth noting that you may have the option to transfer to a new product with your current mortgage lender. This is known as a Product Transfer and is becoming increasingly popular.
Your mortgage lender or mortgage advisor in Cambridge may inform you of when your current deal is set to expire, giving you enough time to consider your options. If you wish to proceed with a Product Transfer before your current deal ends, you may still have to pay early repayment charges.
Staying with your current mortgage lender could also result in lower fees as there are no additional legal costs that come with switching to a new mortgage provider.
Like any mortgage, remortgaging in Cambridge will involve paying various fees. When remortgaging early, you may also be subject to an early repayment charge.
An early repayment charge is an expense that you will almost inevitably face if you plan to exit your mortgage deal early, especially during the fixed period. The earlier you decide to leave, the higher the cost of the charge is likely to be.
The logic behind this charge is that, when you entered into the mortgage agreement, you committed to repaying the borrowed funds over a specific period of time.
Although remortgaging in Cambridge may benefit you financially, it is technically a violation of the terms you agreed to, and may therefore result in a penalty fee.
Exit fees are a common feature of most mortgages, and in some cases, they are mandatory to finalise your mortgage once you have fully paid it off. These fees can be encountered both at the end of your full mortgage term and when you decide to remortgage in Cambridge and switch to a new deal.
Valuation fees are typically associated with remortgaging in Cambridge since when you opt for a product transfer, your existing lender already knows the value of your property. On the other hand, a new mortgage lender will want to assess the value of your property before offering you a new deal.
Whether or not you will need to pay a valuation fee depends on your mortgage lender. Some mortgage lenders may include it as part of their service, while others may charge separately for it.
Your mortgage advisor in Cambridge can provide you with more information on this during your free mortgage appointment.
Product fees, also known as arrangement fees, are typically associated with a specific mortgage product. These fees can be added to your mortgage balance and paid off over time with your monthly payments, but you may also have the option to pay them upfront.
Typically, most mortgage deals, including fixed rates, require a commitment of at least 6 months before you can consider a remortgage in Cambridge. It’s important to note that attempting to remortgage in Cambridge before this period is up will likely result in substantial charges.
If you’re considering an early remortgage in Cambridge, it’s important to first contact your mortgage lender to understand the charges that would be present. Additionally, speaking with a trusted mortgage advisor in Cambridge will help in determining whether it is a wise decision to make.
As a mortgage broker in Cambridge, we offer a free remortgage review with a member of our remortgage advice team to discuss your situation and provide guidance on whether it’s financially beneficial to proceed with an early remortgage in Cambridge or wait for a more appropriate time.
Homeowners have several options when it comes to mortgages, especially as they near the end of their term. One popular choice is to remortgage in Cambridge, which means taking out a new mortgage to replace the old one, often with a better rate.
That being said, not everyone chooses to remortgage for a better deal. Some may want to release equity for home improvements, while others may explore options like product transfers with their current mortgage lender.
Another common option is a debt consolidation remortgage in Cambridge. This involves combining unsecured debts (such as credit cards and loans) into one manageable monthly mortgage payment, reducing overall expenses.
It’s important to note that consolidating unsecured debt and securing it against your home requires expert help. It’s recommended to seek professional mortgage advice in Cambridge before proceeding.
If a remortgage in Cambridge to consolidate debt is determined to be the best option for you by your mortgage advisor in Cambridge and you meet the necessary criteria, you will need to have the right amount of equity in your home.
Equity is the difference between the value of your property and your current mortgage balance.
The reason you need equity is that, like a remortgage in Cambridge to release equity, you will use a lump sum to pay off your unsecured loan debts. These costs will then be added to your mortgage balance, increasing the amount you owe over a longer term.
This means you will be paying interest over a longer period than before, resulting in a higher overall repayment amount.
Whether or not you can remortgage in Cambridge early depends on how far along you are in your term. In general, people do remortgage early, typically starting the process 6 months in advance so that their new deal begins as their old one ends.
Remortgaging earlier than this can be expensive. Remortgaging earlier than 6 months may result in an early repayment charge, which can be costly. For example, if you are only 2 years into a 5-year fixed-rate mortgage, it is likely that you will have to pay one of these charges.
In some situations, it may be viable to pay the charge. Do keep in mind that you would be spending a lot of money to lose out on your current mortgage deal (which may be cheaper overall) and the money spent on the early repayment charge could have been used to pay off your debts.
It is always recommended to speak with a mortgage advisor in Cambridge to determine if this is the best course of action for you before proceeding. There may be better options available, such as a further advance.
A further advance is a type of additional borrowing where you borrow more money from your current mortgage lender, usually at a different interest rate than your primary mortgage.
Like a debt consolidation remortgage in Cambridge, this spreads your costs over your term but with lower interest rates than a personal loan.
While a further advance is often a good alternative to a remortgage in Cambridge for home improvements, it may not be the best option for debt consolidation.
Keep in mind that this extra debt is secured against your home. If you are unable to keep up with payments, you risk falling into arrears and facing repossession.
Risks aside, this option allows you to pay off your debts even if you are not yet able to remortgage, such as if you are still in your fixed or introductory period.
Speaking with a mortgage broker in Cambridge can help you accurately evaluate all available options.
Like any mortgage option, there are both benefits and risks to consider. The biggest advantage of remortgaging to consolidate debts is that it lowers your overall monthly expenses into one manageable mortgage payment.
Your mortgage payments will increase because you are borrowing more, but your monthly payments to the credit providers you have consolidated will stop.
On the other hand, you are increasing your mortgage amount and will be paying back more over a longer term. That being said, this can free up more income for other expenses or to overpay on your mortgage if appropriate.
Keep in mind that consolidating your debt will result in paying more overall. Although the mortgage interest rate may be lower than a personal loan, you will be paying the lower rate for many more years, making it more expensive in the long run.
It also puts your home at significant risk since all of your unsecured loans will now be secured against it. If you fall into arrears after missing any payments, you could face the risk of repossession.
This is why remortgages in Cambridge to consolidate debt should be carefully considered beforehand. Is it worth risking losing a family home to consolidate debts?
The question is whether or not you should do it. This depends entirely on your situation. While it is certainly risky and should only be considered in extreme circumstances, it can still be beneficial and help improve your financial state.
Once again, this is something that should only be done after you have spoken to a qualified mortgage expert. Our trusted mortgage advisors in Cambridge are always happy to discuss your different mortgage options during your free mortgage appointment.
If there is an alternative, we will always recommend that first.
You should think carefully before securing other debts against your home. By adding your unsecured debts to your mortgage, which is secured on your home, you are potentially putting your home at risk if you cannot make the required repayments.
Although the total monthly cost of servicing your debt may have reduced, the total cost of repayment may still have risen as the term of your mortgage is longer than it may have taken to repay the debts originally.
Mortgage Protection Insurance is a term that is used to surround different kinds of cover. The purpose of this cover is to limit financial stress on you and your loved ones from any unforeseen circumstances that may occur.
Below, Malcolm has put together a video highlighting the significance of having the correct insurance in place for your situation. Due to the past events of the coronavirus pandemic, the importance of health and getting insurance is more prominent than ever.
When it comes to protecting you and your family, there is a range of insurances to choose from. Cambridgemoneyman can compare lots of providers and tailor the appropriate policy to your circumstances. Here are the insurance policies that we can offer to you:
One of our experienced Mortgage and Protection Advisors in Cambridge is always at the other end of the phone or email. If you need more information, book your free insurance review today.
Life insurance is there to protect your loved ones financially in the circumstance that you or another joint policy holder pass away. Here at Cambridgemoneyman, we can talk you through all the different types of life cover accessible to you and advise the most suitable plan for you.
This type of policy covers serious illnesses detailed within a policy. Usually, this includes stroke, heart attack, certain types and stages of cancer, and more.
You will find some illnesses will not be covered, this will be detailed within your policy. Furthermore, if you have pre-existing health issues you knew you had before taking out the insurance, it’s unlikely they will be covered. In the policy, the specific illnesses covered and not covered will be stated.
If you fall victim to one of the several specified critical illnesses, the benefit gets paid and pays you whatever the long-term prognosis of that illness. Seeking specialist mortgage advice in Cambridge is key because the type of conditions covered vary from company to company, and this is why this type of insurance cannot be solely price-driven.
Usually, many businesses will offer Life and Critical Illness cover as a combined policy, and the order of pay-out would be dependent on which event happens first, either death or severe illness, the pay-out is made. They could also get written on a single or joint life basis.
Unlike Life and Critical Illness, where the cover pays out a lump sum, Income Protection pays out a monthly sum that acts as a replacement of your wages in the event of you being unfit to work. Furthermore, there are no limitations on the illnesses or injuries covered, except whether they make you unfit to work.
One restriction, however, is the amount you can cover and how quickly the benefit would start to get paid. The policies are underwritten on your health and lifestyle when you applied, just like Life and Critical Illness Cover. When it comes to Income protection, the policies are written on a single life basis.
A menu plan is when you combine your Life Insurance, Critical Insurance, and Income Protection. A discount is added by the providers each time you add a benefit which can make it cost-effective.
Furthermore, a menu plan provides you with a range of cover and benefits that you can mix and match. This allows you to tailor a plan that is appropriate for your needs. Covering yourself and your family is something we strongly advise should the worst happen. Our mortgage advisors in Cambridge can help you with providing more information if you are unsure.
Family Income Benefit is the least common, but can often be useful. In particular, for households with young people. These plans can get taken to Life and/or Critical Illness Cover, and get underwritten in the same way.
Unlike the traditional forms of policy, rather than pay out a lump sum, the cover would pay an annual or monthly income for the remainder of the term of the plan. Therefore, it can replace the payment of the primary worker for several years, dependent upon a particular client’s situation and, because of this, would usually be written on a level or basis, or an index-linked basis designed to keep up with inflation.
You will find that many people have more than one different type of policy, and it wouldn’t be right to think of Mortgage Protection Insurance is something that is not needed because you are thinking the unexpected won’t happen.
Our Mortgage Advisors in Cambridge are here to discuss with you and tailor the type of cover to be the most suitable combination to your family’s priority and budget. To find out more, give us a call or fill out our enquiry form to speak with one of our Dedicated Protection Specialists Advisors in Cambridge today.
If you are a first time buyer in Cambridge or are looking at moving home in Cambridge, you will know that several forms of mortgages are available. Some of them are more common than others, and some may even be difficult to find. We have assembled a list of some of the most common forms of mortgages. You will also find one of our MoneymanTV episodes useful for learning more about these.
A fixed-rate mortgage means that for a specified time, the mortgage rates will remain the same. You should decide your period, usually 2, 3, or 5 years or more, for your payments. You know your mortgage balance will typically be the largest outstanding one, regardless of inflation, interest rates, or the economy.
Your interest-rate shall track the base rate of the Bank of England by using a tracker mortgage. In other words, the lender does not fix the rate itself. You pay a sum above the base rate of the Bank of England. An example of this is where the basic rate is 1%, and you are tracking at 1% more than the basic rate, you pay 2%.
If you carry out a repayment mortgage, you pay capital and interest together every month. So long as you carry the full term of the interest loan, you will pay the mortgage debt at the end, and the property shall be yours. This is the risk-free way of paying the lender back the money.
The interest you are paying in the early years, and particularly with a period of 25, 30, or 35 years, your balance would decrease very slowly. In the last 10 years or so, this scenario changes, where your payments pay more capital than interest and your balance falls even faster.
While some transactions allow mortgages on an interest-only basis, residential property is even more difficult to obtain on an interest-only basis. Lenders are also less likely to sell a product that is interest-only. However, it may be an alternative under some conditions.
This involves reducing the amount of money you pay out as you’re older or have other savings. When it comes to offering these items, lenders are very strict now, and the valuation loan is much smaller than before.
You can build a savings account alongside your mortgage account for an offset mortgage. How this works, is you pay interest on the difference, for example, you pay £80,000 for the balance of £100,000, and £20,000 is deposited in your bank account. This can be a very successful way to manage your capital.
Our team of mortgage advisors in Cambridge are happy to help if any significant changes in your life have lead to removing a person from a mortgage. We have experience in helping people progress through what’s known as “financial separation”.
We have dealt with a plethora of different mortgage situations, ranging from straightforward to incredibly difficult. Therefore, it is very rare that we haven’t encountered a situation at least once before. If you are seeking any specialist mortgage advice in Cambridge, we are here from early until late to be your helping hand through any difficult times you’ve found yourself in.
Gaining perspective from the mortgage lender’s point of view can be key in a situation like this. Lenders will have two people contracted in to give them security on the property. This method allows lenders to have multiple routes to go down when it comes to chasing payment if a circumstance like arrears and/or repossession occurs.
Security can be an issue when it comes to letting someone go from the property because you only have one option for payment. Preferably, they want to make sure that the person wanting to keep the property can afford it in their own right based on income and affordability. It may be best to switch lenders and take out a mortgage in your sole name.
In some cases, like financial separation, a lump sum may also be raised against the property. This allows you to ‘pay off’ the other person tied into the deal with you. Issues can occur, however, with one being that a person may not be able to afford the whole mortgage in their sole name.
There are still various routes such as family guarantors to go down and a mortgage broker in Cambridge may be able to help you with that. If you are looking to put life insurance policies and any home insurance policies in sole names, our dedicated mortgage team is also able to help you with that.
Some clients come to us for specialist mortgage advice in Cambridge when their credit score is lower than the acceptable amount or they have missed payments. Adverse credit is a frequent occurrence and this is something that our mortgage advisors in Cambridge might be able to help with.
A potential factor that could effect you when obtaining a mortgage is if you have either missed a monthly mortgage payment or any smaller payments such as your mobile phone contract. This can happen through an attachment on your credit score that states your missed payments. From this, the lender could see that you are a risk.
However, missing monthly payments doesn’t always mean you can’t get a mortgage, but there is the potential risk that the high street bank may turn you down. This is especially the case if you only have a small deposit for the property you are looking at, as it may not be enough to convince a lender to lend to you. To prevent this from happening, you may need specialist help.
The lenders will want to know when the default was registered against you. The likelihood of receiving the necessary help depends on how far away you are from that specific date. In certain circumstances, like ill health, separation or redundancy, the advisor may be able to help even if it is a recent occurrence.
We have provided further information below that answer any common mortgage scenarios regarding bad credit mortgages in Cambridge.
Your mortgage advisor in Cambridge will want you to provide an up-to-date copy of your credit report and you can obtain one of these usually free of charge (check with the providers T&Cs). It is advised you have your credit report before applying for a mortgage and even more so if you have had any doubts about your credit history, as it gives your advisor an exact snapshot of your financial situation.
This depends on your circumstances. When it comes to the impact of bad credit, some customers may become a little confused. Despite having bad credit, with a sufficient income & enough deposit, it may be possible to obtain a mortgage.
Reassuring the lender that you can pay back your mortgages without the possibility of any late payments happening is key, as the lender needs to proceed with confidence. If the worst happens, your home may get repossessed, which the lender would want to avoid.
There are many routes to take when people who have bad credit are looking to get a mortgage, even if these routes may have higher rates of interest. The most appropriate next step when seeking a potential mortgage is to get in touch with a mortgage advisor in Cambridge (like ourselves) to help.
In some cases, you may find yourself struggling financially and are unable to keep up with mortgage payments you didn’t have trouble paying in the past. This isn’t an ideal place to be and even if this was a momentary lapse, it would still be on record as a missed payment.
Credit issues may occur during this period and this could become an issue for when it comes to getting a remortgage at the end of your term or a new mortgage after moving home in Cambridge. As mentioned before, this is based on risk. Can the lender trust you not to find yourself in that situation again?
Our mortgage advisors in Cambridge have a lot of experience when it comes to customers having bad credit, particularly when they have previously had or currently have a mortgage.
Other adverse problems customer could potentially run into regarding their credit are;
Even though these situations aren’t the best circumstances to find yourself in, it’s not the end of the road. The process may involve many challenges which involve you paying a higher rate of interest. There are many specialist lenders out there who may accept you depending on the nature of your circumstance.
We highly recommend that you work on improving your credit score. Our how to improve your credit score in Cambridge article is a helpful, in-depth mortgage guide that will hopefully put you on the right path to obtain a mortgage.
As a whole, the mortgage process can be very surprising and have its fair share of both ups and downs. Some applicants may receive a fast and simple process whereas others may find it more difficult to find the road to mortgage completion.
Either way, once you secure your first property, you will come to a point where you can choose one of two routes to take.
Your first option will be to continue climbing the property ladder and move into a new home; your other option, if you feel like you’ve already found your dream home, is to remortgage for home improvements such as an extension or conversion.
In this article, we are going to focus on remortgaging and the different reasons why people choose to remortgage.
A remortgage is simply taking out a new mortgage to pay off a pre-existing mortgage. There are lots of different things that you can do at the point of remortgage, it’s completely up to you what you choose.
Generally speaking, you will remortgage every time you come to the end of your fixed mortgage term. If you choose not to remortgage, it’s likely that you’ll fall straight onto your lender’s standard variable rate of interest, which will probably be more costly than your current rate.
Your initial mortgage deal will likely last you around 2-5 years. As mentioned above, if you don’t remortgage you will end up on your lender’s SVR. Sometimes, their rate can be higher than tracker mortgages (track the Bank of England’s base rate), so this could end up costing you a lot more than your usual mortgage payments.
If your mortgage term ends, you can also fall onto a tracker mortgage. A tracker mortgage interest rate will fluctuate depending on how the economy is performing.
For example, during the coronavirus pandemic, in March 2020 the Bank of England’s interest rate was significantly lower than usual as the economy wasn’t performing the best. Slowly, as the economy started to recover, the interest rate rose as the months passed.
This is why people often remortgage to find a better rate. Homeowners want to find a better interest rate so that they don’t have to pay as much for their mortgage payments every month yet they are still paying off their mortgage.
Rather than moving home in Cambridge, you could always freshen up your existing home to create more space through an extension or conversion. You can also remortgage to fund home improvements such as a new kitchen or living room, it’s completely up to you.
This works like so; when you take out a new mortgage product, the costs for home improvements will be incorporated into your mortgage. This means that your monthly payments will increase and so can your mortgage term.
If you already love the house that you live in, it could save you a lot of money if you were to remortgage over move home. It may be much easier and more beneficial for you in the long run to remortgage for home improvements rather than move home.
As a mortgage broker in Cambridge, we’ve seen many applicants that have realised further down the line that they want a different product, however, they are mid-way through their term.
They may just want a more flexible product that allows them to reduce their term. Although this could mean that their payments increase, their mortgage term will decrease.
A flexible mortgage could allow you overpay your mortgage payments to pay it off quicker. Usually, people choose to remortgage for this reason if they’ve perhaps had a pay increase or been given a large lump sum of money (e.g. through a redundancy).
Some people may even want to keep their monthly payments the same and remain on their current base rate. When this is the case, you are sometimes able to remortgage to extend your term.
As a homeowner, you are bound to have some equity built up inside of your home. This equity can be turned into cash, and that’s why people sometimes remortgage to release equity.
The amount of equity that’s within your home can be calculated by taking away how much is left on the mortgage from the property’s value. The amount that is remaining can be taken out and turned into cash.
You can choose what you spend this money on. It could be for home improvements, a deposit for another property (buy to let landlords) or even a holiday/ to pay off a car loan – you choose!
If you are over the age of 55 and have a property that is valued around at least £70,000, you may want to consider your options for equity release in Cambridge. Speak to an experienced later life mortgage advisor to learn more.
Firstly, debt consolidation is a specialist subject, so we would recommend that you speak with a Mortgage Advisor in Cambridge before rushing into anything.
Consolidating debts consists of incorporating unsecured debt into your mortgage. Doing so will increase your mortgage payments and sometimes your mortgage term too.
All lenders have a different viewpoint on consolidating debts into a mortgage, some may allow it and some may not. Lenders often disallow it as you are putting unsecured debt into a secured asset. This means that if for any reason you fall into arrears after failing to meet your mortgage payments and your property is repossessed, they will lose out on money as there is all of your debt now secured within the property.
It’s a very complex subject that you should get specialist help for. For debt consolidation and remortgage advice in Cambridge, you should get in touch with our excellent mortgage team at Cambridgemoneyman.
Having now read about the reasons that people remortgage and how they work, do you think that you could benefit from remortgaging?
Whether it’s to access a better rate, for home improvements, for term flexibility, to release equity, to consolidate your debts into your mortgage or for something completely different, there is usually always a situation where a homeowner will remortgage.
If you want to speak with a remortgage advisor in Cambridge about remortgaging, feel free to get in touch with our team. We will be more than happy to try and help you accomplish your remortgage wishes.
Owning a home that is filled with happiness, love and warmth is the dream of every first time buyer in Cambridge at the start of their process. Having your own home feels special, no matter where you go or whatever you do, you will always feel most comfortable in your own house.
There is no doubt that buying a home is one of the biggest financial decisions you will ever make, so it’s understandable you’d want to get things right the first time around. If you’re finding it difficult to obtain a mortgage, a mortgage broker in Cambridge may be able to help.
Once you have your home, you will be able to take pride in being a homeowner and having the freedom to make any changes (so long as planning permission approves, if necessary) that you want to. That’s why getting the right mortgage advice in Cambridge is a must have.
Of course with taking on a new financial venture, you’ll want to know how much it will all cost. Whilst specifics vary, we have put together a guide about the costs of buying a home in Cambridge, what is included, what to look out for and how to best prepare as a first time buyer in Cambridge.
Estate agency fees can at times be negotiable and will have a starting fee that varies from agent to agent or company to company. More importantly, the most affordable agents are the field experts who you will find working online.
The main reason for their lower prices, is that they aren’t covering the costs of maintaining a physical location such as an office. That being said, you should still be conscious about what you do online and make sure you prepare ahead of time for the right deal.
Before you take out a mortgage for such a large amount of money, the mortgage lender you are looking to borrow from needs to make sure that the property in question is actually worth the amount that you will be paying for it.
In order to achieve this, the mortgage lender needs to conduct a professional survey, which may cost you some extra charges in the form of a survey fee. On the other hand, some mortgage lenders may provide this free of charge, although they may not provide you with the report.
For the surveys you do pay for, you could be looking at a few hundred pounds. Of course, if you want an in-depth home buyer’s report for documentation, the service fee almost doubles.
Your mortgage advisor in Cambridge will explain the differences between each survey to help you make a more informed decision. For first time buyers in Cambridge, it may be recommended to go with the premium survey if the property is old or in somewhat worse condition.
Though you may consider an in-depth survey an expensive option, it may save you from repairs and maintenance costs throughout the coming years.
As a typical rule of thumb, the mortgages that have the lowest interest rates tend to have higher service charges. Set up fees for the mortgage can be as low as nothing at all, to as much as a few thousand pounds, it really does vary.
An open & honest mortgage advisor in Cambridge will help you to make arrangements for all of your finances, especially when it comes to your mortgage arrangement fees. In some cases, the lender arrangement fees can also be added to your mortgage.
The inclusion of a solicitor is a crucial part of your mortgage, as it is them who will be handling the legal side of the purchase and mortgage process.
For instance, they may validate the property ownership, find out any future plans for adjoining properties, as well as the most important step, which is the processing and handling of funds, to complete the sale of the property.
When you view your solicitor’s fee, check if their quote includes VAT and local searches. Though a typical solicitor’s fee is a few thousand pounds, the legal verification is worth the price. Getting first time buyer mortgage advice in Cambridge can help you find out which is the best solicitor for you.
Some properties or purchases may be subject to stamp duty – a paid land tax to the government. You can check the official government website to get the latest updates and more information regarding stamp duty.
The rules concerning this tax change every now and again, so it’s worth checking to make sure you’re up to date. If stamp duty is something you need to pay, your mortgage advisor in Cambridge will advise on this.
Before you get in touch with a trusted and dedicated mortgage broker in Cambridge, it is important to make sure that you do your research first, so that you are going with the best mortgage broker for you.
An expert mortgage broker in Cambridge will sometimes charge a small fee, which will entirely depend upon the amount of your mortgage and complexity of your case. Most mortgage brokers, like us, will only charge a fee, upon completion of your mortgage, not upfront.
When moving home with a mortgage, many people will hire a van to move all of their belongings into their new home.
We would always recommend hiring local removal companies to make the most of their services. The costs of these can vary, though it could be said that hiring and driving your own van could cost less.
If you need further assistance or Credit Score Mortgage Advice in Cambridge, feel free to get in touch with our team.