What it is and how you can benefit?
A remortgage is the process of taking out a new mortgage, with a different lender, on a property you already own. You are not obliged to stay with your original lender for the full mortgage term and here at AIMS we will advise on the simplest way to replace your existing mortgage, or even to borrow more money against your property.
Many mortgage products give you an attractive initial rate for only a few years before going up or changing. When this period is over, many people will find there are better deals elsewhere, and here at AIMS we can help you easily switch to a different product or provider with more favourable terms often saving thousands of pounds over the course of the loan.
The main 2 reasons to remortgage a property are:
1) To save money, maybe hundreds or thousands of pounds:
• By sourcing you a more suitable product, especially if your current deal is coming to an end or you are on your lenders standard variable rate AIMS can help you to locate the most cost-effective deal for your requirements.
• Due to a possible rise in your house value. Interest rates are at an all-time low and many people can save hundreds or maybe thousands of pounds on the cost of their mortgage. Rising property prices may mean that you will now be in a lower loan to value tier, meaning you own a greater % of your house. This means that AIMS may be able to source a lender who will offer you a better rate of interest due to the lower risk involved.
• By reducing your mortgage term. The most powerful money saving tool is to reduce the term of your mortgage, this one method above all others could save you the most money in the long run.
• By possibly paying off existing debts. Caution needs to be employed before considering any debt consolidation mortgage. Working closely together with AIMS we will compare the overall cost of your current mortgage and loans/credit cards with the costs of the new deal so that you know the cost implications over the long term.
2) To raise money against a property:
• To carry out home improvements, such as extensions or alterations to the kitchen or bathroom.
• Divorce. Many people going through a divorce or splitting from a partner are keen to retain their house, particularly where children are involved. They are many options for those wishing to take on a mortgage in their own name and pay off their current partner.
• Buying a student let or property for your child if they are going to university.
• Provide children with a deposit for their first house. With the huge rises in property prices seen over the last few years, parents can potentially raise a deposit for their children allowing them to get onto the housing ladder.
When you contact AIMS for a remortgage we will:
• Look at your current position and identifying where money can be saved. We will locate suitable deals and work out whether it is worth paying certain costs/fees or taking advantage of lenders free surveys and legal fees packages.
• Search the whole mortgage market for you and make sure you’re not paying too much to your current lender. We will also search through other exclusive remortgage deals that only we have access to, and make sure you get the best product for your needs. Your monthly repayments could be substantially less than if you hadn’t changed.
• Looking at your finances (see Moving Home) to work out your budget going forward and establish how much your outgoings would be on a new mortgage compared to your current one. This includes working out any costs of changing (legal fees, admin charges, etc.). What looks like a great interest rate might not work out as a great APR (annual percentage rate).
YOU MAY HAVE TO PAY AN EARLY REPAYMENT CHARGE TO YOUR EXISTING LENDER IF YOU REMORTGAGE. THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME.
A MORTGAGE IS A LOAN SECURED AGAINST YOUR HOME OR PROPERTY. YOUR HOME OR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE OR ANY OTHER DEBT SECURED ON IT. THE FINANCIAL CONDUCT AUTHORITY DOES NOT REGULATE MOST FORMS OF COMMERCIAL MORTGAGE AND MOST FORMS OF BUY TO LET MORTGAGE.
We offer a comprehensive range of mortgage products from across the market. We offer both first and second charge mortgages, but not deals that you can only obtain by going direct to a lender.
For those seeking to increase their existing borrowing, alternative finance options may be available and more appropriate for your needs. For examples, a further advance from your existing lender or an unsecured loan (e.g. a personal loan). For those seeking a ‘Retirement Interest Only Mortgage’, a ‘Lifetime Mortgage’ may be available and more appropriate for your needs.
Principal: Peter Varney
Aldershot Independent Mortgage Service (Aims) is a trading style of Peter Dane Varney which is an appointed representative of TenetLime Limited, which is authorised and regulated by the Financial Conduct Authority. TenetLime Limited is entered on the Financial Services Register (www.fca.org.uk/register) under reference 311266.
The guidance provided within this website is subject to the UK regulatory regime and is therefore primarily targeted at consumers based in the UK.