Remortgages

Southampton, Hampshire, National

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 buy to let mortgage.

Most people refinance their current mortgage debt to take advantage of the current market and benefit from cheaper rates but there are also many other reasons why you might be looking to remortgage –

Capital Raising - The cash could be for several reasons like home improvements, a holiday or maybe a new car. It might also be a necessity as getting divorced is a fact of modern life and many partners would prefer to stay in their current home if they could raise money to "buy out" their ex partner.

Debt Consolidating - This is the process of incorporating some or all of you unsecured debts i.e. credit cards, loans etc. within your mortgage debt. Unsecured credit is normally over a shorter term than secured and it is therefore this might not always be in your best interest to do so. All our advice is based on your individual circumstances. There are, however, times when consolidating the credit is perfectly justified, especially if the payments are difficult to maintain. Spreading the loans over a longer period will reduce monthly payments and will normally be at a lower interest rate. In doing so you would move your unsecured to secured debt, although monthly payments maybe reduced the overall amount paid back would increase as it would be spread over a longer term.

THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME.

Capital Raising for a Deposit – Purchasing a second property or a buy to let property is becoming more and more popular; saving for the deposit is quite a difficult process while already paying for a current mortgage. If you want to move home but cannot sell your current home consider raising the deposit on the current home and renting it out on a Let to Buy scheme or you might be considering a buy to let property to make some extra income. By remortgaging it might make this process considerably easier. Call us to see if it could work for you.

Remortgaging your help to buy equity loan...

If you have an equity loan when you reach the end of the first five years, you'll have to start paying interest on the equity loan. This will be charged at 1.75% in the sixth year. On a £40,000 Help to Buy loan this equates to £700 a year or £58.33 a month.

From the seventh year, this rate will rise annually by the Retail Price Index, plus another 1%.

Because you will have an additional monthly repayment, this will also be factored in by your mortgage lender when they assess your application to remortgage and it could potentially reduce the amount you can afford to repay to them each month. You may also find it harder to remortgage than you might think.

While there are many lenders who are happy to help buyers purchasing a property using the help to buy equity loan scheme, there are far fewer lenders who help clients remortgage to repay part or their entire equity loan. Also the mortgage application is only part of the process as there are additional costs to the housing association and survey fees.

Alexander Southwell Mortgage Services Ltd have a wealth of knowledge with these applications and can help you put the processes in place to purchase the remaining share in your property, please call us today to help you further.

This scheme is available in England only. The Scottish Government, Welsh Government and Northern Ireland Housing Executive run similar schemes – check out their websites.

Why choose us as your mortgage adviser?

We are independent mortgage advisers, which mean we have access to a large, comprehensive range of mortgage lenders throughout the intermediary market. We can recommend lenders not on the high street, perhaps even some you have never heard of.

We specialise in providing remortgage advice to clients both new and old. We will begin by understanding your objectives, consider all the options open to you and then recommend the right course of action.

Mortgage deals may not be available and lending is subject to individual circumstances and status.

You may have to pay an early repayment charge to your existing lender if you remortgage.

Our professional fees for remortgaging your property

For establishing your needs, undertaking research and making a recommendation, we typically charge a fee of £295 on submission of the mortgage application. These fees may be waived for existing clients.

For more complex cases, for example adverse credit, self employed or homes of multiple occupancy, we typically charge a fee of 1% of the loan amount. For example if the loan is £80,000 our fee would be £800.

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