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- TO REMORTGAGE OR NOT TO REMORTGAGE
- Black and white. JOHN & LINDY'S kitchen in Leeds. LINDY (35) and JOHN (35) sit at the kitchen table. It's a locked off shot. They both know they're being filmed.
- There's something of an atmosphere like they've just had an argument. John has clearly made an effort for the camera. CAPTION: LINDY (second time buyer). JOHN (second time buyer).
- To remortgage or not to remortgage, that is the question.
- Stop being weird just because you’re in front of camera.
- JOHN gives a very unnatural and uncomfortable smile to camera.
- We need to work out whether we should remortgage the house or not.
- Remortgaging is where you replace the existing mortgage on your home with a new one with another lender, or you could just do a rate switch, this is where you negotiate a better deal with your existing one.
- Right, so...
- Sometimes it’s not about saving money, it could be that you want to fix your repayments, need more flexibility or you may want to free up a lump sum of money.
- Yeah so...
- When rates are so low and because we have decent equity in our home and we’re on our lender’s standard variable rate, it’s an opportunity to see if we can save money by remortgaging.
- Yeah... this is annoying because when we were talking about it off camera, I was the one who was telling you all of this and now you look like you’re the one who knows what they’re talking about.
- If you’re remortgaging the process may well have changed since the last time you did it, so be prepared.
- That’s exactly what I said.
- Well go on then you do it. John stares at the camera. Dries up.
- I can’t think of anything now can I?
- Lindy crosses her arms and gives a smug smile.
- And you’re wearing your expensive dress.
- I really don’t know what you mean.
- You asked me if equity was something to do with horses.
- Frosty silence.
- His new trousers are too tight around his beep... restricts the blood flow to his brain. John and Lindy both stare at the camera.
- His new trousers are too tight...restricts the blood flow to his brain.
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- Because we want to make sure we’re doing a good job, calls may be monitored and/or recorded, we hope you don’t mind. Your home may be repossessed if you do not keep up repayments on your mortgage.
Whether you're coming to the end of your current mortgage deal with your existing lender, or you're looking for a more attractive mortgage, we have a range of options that you might find tempting.
What is remortgaging?
Put simply, remortgaging is moving your mortgage from one lender to another without moving home.
Some people wait until the end of their current deal before remortgaging but you don’t have to, however, there are some important things to consider when thinking about remortgaging:
- is there is an early repayment fee on your current deal or an exit fee?
- look at both initial and ongoing interest rates when comparing your current mortgage rate with those offered by other lenders
- what set up costs there are on your new mortgage deal, for example, application fees and legal fees?
There are generally four reasons why people look to remortgage:
As interest rates can change regularly you may find a lower rate than your current deal, which could make your monthly mortgage payments lower.
As an alternative to moving to a bigger house, it may be possible to add space and value to your existing home with an extension or conversion. Remortgaging could be a way to release some equity in your property to pay for this.
Some people release money so they can spend it or pay off other debts. If you do this it's important to remember that the amount you owe on your mortgage will go up but the value of your home may not.
Take care to understand the risks with increasing the borrowing on your mortgage. Make sure you can afford the new monthly payments as your home could be repossessed if you do not keep up repayments on your mortgage.
Fixing your mortgage payments
Some people want the security of knowing exactly what their mortgage payments will be for a set period of time (e.g. 2 years) and change to a fixed rate mortgage to achieve this.
Change in financial circumstances
It's not unusual for people's personal circumstances to change, for example, due to increases or decreases in income and outgoings, or a major life event. If this happens you may decide that it is an opportunity to reivew your mortgage.
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Think carefully before securing other debts against your home. Your home may be repossessed if you do not keep up repayments on your mortgage.
† Our Mortgage Team is available 8am to 10pm, 7 days a week