Remortgages

A WAY OF TAKING ADVANTAGE OF NEW INTEREST RATES

Everybody in the UK will get a re-mortgage at some point in their life. No-one stays with the same lender all the time – rates change, products change, circumstances change and what is right for you on one day, may not be right for you the next day.

Remortgages South Coast

What defines a remortgage?

A remortgage is a new facility that is taken out on a property that you already own. It is not a brand new mortgage that you take out when you purchase a property – instead, a facility already exists and having spoken with a professional and received independent advice – you move to a better product.

How often should you remortgage?

Every time your mortgage term comes to an end you need to refinance the debt. In many cases, even when your ERP (early redemption period) comes to an end, it can be the best course of action. Some people re-mortgage every two years and go from interest rate discount to interest rate discount.

Do income changes affect your remortgage?

Yes. A re-mortgage still has to be affordable and suitable to meet all of the regulations about mortgages so if there any substantive changes in your circumstances – it must be reported to the lender.

Some of our best current mortgage deals for Isle of Wight*

Can everyone remortgage their house?

No. It will require an entirely new assessment of your circumstances, however, if your income hasn't really changed, and you have already demonstrated to one lender what you can afford, you will be in a strong position to remortgage your home.

BRAM VIS
Frequently Asked Questions: 

What is a re-mortgage?

This is simply swapping the mortgage you have on your current property for another mortgage with a different lender. You may consider this option if your existing mortgage deal has expired, or is about to expire, and you want to see if a more competitive deal is available. You could also consider this if your circumstances have changed and you want to borrow more. There are many reasons why you would re-mortgage, but most importantly - this does not involve moving home, not does it involve paying any Stamp Duty.

What is a repayment mortgage?

A repayment mortgage is where you pay the interest as well as the capital borrowed, so your mortgage balance is reduced every time you make a payment. In the early years you will pay mostly the interest and a little towards your capital but in the later years you pay more towards the capital.

How much can I borrow?

Every lender will be different in their approach in terms of to what you can borrow – there simply is no set formula. The actual amount that you are eligible to borrow will be determined by the cost of the property you wish to purchase, the size of deposit you have, your income and affordability (taking into account your monthly financial commitments and any future commitments). As a complete rule of thumb – and it is different from all lenders and all customers – but the amount of the loan will not be that far off from 4.5 times (2018/19 figures) your provable taxable earnings. So remember - not what income you earn – but what taxable income you earn - as detailed on your tax return!!

Where can I get more information?

Please visit our FAQ page here or contact Bram directly and/or get a confidential & professional call back from Bram here.

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London West End office:

020 7504 1090

Isle of Wight office:

01983 642 643