Remortgage Tips - Remortgage, mortgage & finance advice

Remortgage Guide

When do I need to remortgage?

Typically, you need to remortgage whenever you are approaching the end of your current fixed, capped, or discounted rate period. Once this period ends, you will automatically be switched to your lender’s standard variable rate (SVR), which will usually significantly increase your monthly repayments. Most lender’s SVR is set 2% higher than other deals on the market, forcing the average borrower to pay roughly £200 more per month (£2,400 more per year) once the fixed or discounted period expires. It is best to avoid this payment shock by planning ahead and getting cheap remortgage rates before you end up on the SVR.

However, you don’t have to be on a fixed, capped, or discounted rate mortgage in order to remortgage. You may find that interest rates are currently very low and you want to change your variable mortgage to a fixed mortgage.

Similarly, you might find that you want access to more money in order to fund activities such as home improvements. By releasing some of your equity and taking out a bigger mortgage, you will have extra money to spend on other purchases. This process consolidates your debts and only gives you one payment to worry about each month. Additionally, this can save you a lot of money since mortgages always have a better interest rate than personal loans. Just be careful when you calculate the cost of adding this money onto your mortgage payment. You will have a better interest rate, but you can end up spending a lot of money on interest if you have a long mortgage term. You also need to make sure you can comfortably make your monthly payments since this method of debt consolidation puts your home at risk if you fail to pay back your loan. [Read more…] about Remortgage Guide

Revisiting 5 Hidden Expenses Of Homeownership

By Sergio

With the mortgage boom in full swing, it stands to reason that you might be dreaming about a new home. However, first time homebuyers need to be aware of the hidden cost of owning that dream home. It’s easy to get your emotions out of step with reality. It’s something that everyone has done in their life, even in the financial sphere of things. But we have to remain vigilant about our finances to make absolutely sure that we’re not running into pitfalls and traps. Being aware of what you can get done and what you’re not going to be able to do is incredibly important.

Make sure that you think carefully on whether or not you’re going to be able to afford these expenses regularly. It’s not like renting a flat, where the landlord is responsible for the things that go wrong. When you own a home, you have to take on all of those lovely costs yourself.

There is a silver lining to this cloud: it’s not just money being flushed down the toilet. You’re building a piece of something great for yourself. It’s something that can be passed down to your children after you pass away. There are tax benefits to owning a home, as long as you’re willing to think through them carefully.

Without further delay, here’s the list of hidden expenses that you need to keep an eye out for while home shopping.

1. Inspection of Premises

A home inspection can be all over the place, and there’s a strong temptation to do this on the cheap. Don’t fall for that trap, because a “cheapie” inspection can overlook some serious problems in your home. You’re a lot better off investing time to find someone of quality to look over the place. Under the inspection part would be the expectation that you’re doing your research on the property. Is it on the site of an old mine? You have to make sure that you’re going to come out ahead on a home purchase.

2. Closing Costs

A lot of potential homebuyers ignore the closing costs associated with buying a home. Don’t fall into this trap either, because closing costs can definitely be pricey. Your lender can give you a decent estimate on what your closing costs will be, so make sure that you have those set aside. Sometimes they will roll the estimated closing costs into your mortgage, but you’re still on the hook for anything that doesn’t get covered.

3. Maintenance

As we said above, you’re going to be on the hook for everything that you have to replace in the house. So if the roof starts leaking, it’s up to you to fix it with the help of Jayhawk Roofing & Siding. This is where a good inspection comes in. if you have a motivated seller that just wants to get out, they may agree to fix things so that it won’t be an extreme problem for you. [Read more…] about Revisiting 5 Hidden Expenses Of Homeownership

Remortgaging Deals Aren’t Created Equal – Here’s What You need to Know

By Sergio

Looking at remortgaging is something that a lot of people are doing now. They want to free themselves from a higher interest rate, or just free up some money that can be used to make repairs on the home.

One of the top recommendations that we can definitely make to you is that you want to get a great mortgage broker. A lot of people shy away from using brokers because they know that they’re going to be paying a commission. This is not something that you need to necessarily worry about. It’s the best way to get the type of deals that can really save you a lot of money. If you don’t go with them, then you’re going to run the risk of really not being able to get the type of deals that you’re really eligible for, and that would be a real shame, right? Absolutely!

You need to think about the costs involved with remortgages as well. This is not a free service. In fact, if you tell your mortgage lender that you’re considering a remortgage…don’t be surprised if they try to offer you one of their products. This is lost money to them, and they’re going to try to do anything that they can to put that money back in their pocket. They don’t want you to move your mortgage around. Don’t feel bad if you’re considering moving your mortgage, by the way — plenty of people do this every couple of years. Gone are the days where you got with a 25 year term mortgage and just didn’t think about it. Now is the time to figure out what deal is going to be the best for you.

Early redemption penalties come into play from the existing mortgage. You might not have any, but you never know until you look at your own contract. You also want to think about the legal and other administrative costs that might pop up. They can’t hide these charges from you, so all you really have to do is ask. You might also want to check the fine print carefully just to be sure that you’re not missing anything. If the broker gives you a deal and you find that your original mortgage lender is better, you’re under no obligation to go with what the broker wants you to do. You can always go to your old lender and check out their offer carefully. [Read more…] about Remortgaging Deals Aren’t Created Equal – Here’s What You need to Know

Interest Only Mortgage Ending Fast – You Need to Remortgage!

By Sergio

Interest only mortgages are a great way to get into your next home. However, that doesn’t mean that you want to stay in them until the very end. You need to be thinking about your next move. Gone are the days where people kept mortgages until they were paid off. There’s really no way to pay off an interest only mortgage like that, because you’re never going to affect the principal with your mortgage payments. That type of mortgage that would change the principal balance is known as a capital and repayment mortgage.

Now then, what about your options? When time is running out, it can feel frustrating not to have remortgaging deals flying at you. But remortgaging really is the best way to handle this problem.

If remortgaging isn’t an option due to your age, you will want to switch over to making more than just the monthly payment. If you’re in a position to do that, then you’ll find that you’re going to be paying off your mortgage a lot faster than what would normally be expected. It’s just time to check out as much information as possible on your side of things. If you can, work with the mortgage that you have and see if you can remortgage at another time. Making all for your payments on time and even some before the due date will help get the attention for your lender.

If you have to, you should know that you can indeed sell your home. But since that’s the last thing that you want to do, you can also look into an equity release scheme that could work. This is for those 55 and older, but it’s never a bad thing to check it out through an adviser. They can give you more information that meets your needs because they will be able to ask you specific questions.

For the time being, it’s good that you’re looking into many options all at the same time. It’s possible to save your house if you’re going with an interest only deal, but you are going to have to act fast to avoid still owing on one house while living in another house.

Once you’ve been burned by an interest only mortgage, you might feel cheated. However, there are steps that you can take to avoid this problem occurring in the future. Make sure that you get professional advice on something this important. Good luck!

Deciding Whether to Borrow More When Remortgaging

By Sergio

When you decide to remortgage, you may think that it is a good opportunity to increase your mortgage amount. If you have equity in the house, then chances are that you could be lent more money and so it is not unrealistic to consider it as option, but you need to think carefully.

Firstly consider whether having a higher debt will benefit you. Calculate how much more you will have to pay back each month or if you are remortgaging for a lower cost, whether borrowing extra will defeat the object of that.

You need to think about whether borrowing extra against the mortgage is the cheapest option for you. You may find that if you borrow the money using a different type of loan that has a shorter term, it may be cheaper. Do some calculations to find out which way might be the cheapest way to borrow the money as this could save you a lot.

It is worth also considering whether you should borrow extra at all. Have you just decided to borrow the money because you think that you can? Is that a good reason for borrowing? If you are going to use the money to invest in something that will make more than you will pay in interest, then it could be worth while. You may want it for a house deposit for an investment property for example. If you are getting it to pay for something such as new furniture and carpets or home improvements, then consider whether it is better to wait and save up rather than borrow the money. Calculate how much the borrowing fees will add on to the cost of the items and decide whether it is really worth it.

It should not be a quick decision as borrowing money is always costly. You need to consider what you will gain and whether that will be worth the extra cost. Think about the amount that you are borrowing, what you are using it for and whether you would rather not have that extra debt. It can be a burden, not just financially and to increase the debt that you already have may be stressful in the future. It is also worth doing some research to find out whether there are cheaper ways to borrow the money as this could be a better way to get it.

Remortgaging In the Spring – The Timing Is Just Right!

By Sergio

Thinking about your mortgage? Probably not. You’re probably more focused about the fresh air, the trees, and the nice scenery around your home. But isn’t it time that you thought about investing in your home for the future? Believe it or not, remortgage rates are very attractive right now. it’s a good time to really stop and look at getting into a new remortgaging deal that could not only help you save money, but free up cash to allow you to work on your own home.

There’s a sense of pride that we get as homeowners when we can actually improve upon the structure and make the home more inviting to live in. If you have any plans of thinking about moving to another location and selling your home, then improving your home is a good thing. It helps you really get as much money for your home as possible.

If you’re going to pursue a remortgage, you need to realize that there are fees involved with the process. You need to calculate how much your savings are really going to be, including those fees. If you’re not sure what fees will be involved, you can ask for a free schedule up front. You should avoid any remortgage company that will not openly discuss the fees with you. This is a warning sign of a bad deal to come.

The remortgage process basically gives you the cash to pay off your current mortgage, replacing it with the new one. You also have to look at how long this process is going to take. You’ll still need to keep making your mortgage payment as normal until the deal is closed.

You have to make sure that you are looking at all of the different angles. If you’re getting a remortgage for the express purpose of your home improvement dreams, then you can’t get sidetracked when the money comes. You have to make sure that you’re getting your home repairs underway. It’s far too tempting to blow the money, which will lead to problems down the road.

If you have never handled home improvement, you want to make sure that you get a real plan in place to maximize the money.

The worst thing that you can do is go with the first offer that you see. Since remortgaging is something that a lot of banks offer, you want to be able to shop around. This is even more the case if you know that you have great credit. You don’t want to just get sucked into an offer that just isn’t going to serve your needs.

If you are married, then your spouse will have to sign off on the remortgaging deal in order to get things moving. Good luck!

Being Tied in to a Mortgage

By Sergio

When you are remortgaging you will have to make a decision as to whether to get tied in to a mortgage or not. There are quite a few lenders who have fixed rates, but you have to stick with them and this can be a bit of a gamble.

Fixed rates can be really good. They may be lower than the current rates and remain lower, so you can save a lot of money. They will also allow you to know exactly how much you will have to pay back each month. This can be useful if you have a very tight budget and cannot afford for the payments to go up.

However, there can be disadvantages as well. If you are tied in to a rate and the base rate falls, you may find that there are a lot of better mortgage rates out there. However, you will not be able to change your lender and therefore will not be able to take advantage of them. This can be annoying.

Therefore making a decision to tie yourself in to a mortgage can be an important one. You have to consider what you think may happen to interest rates in the future and whether you think you will do well to be tied in. If you think that rates will rise, then it can be good to be tied in to protect yourself from those rises. However, if they do not rise much or take a long time to rise, you may still not be as well off as the rate you are fixed rate could be quite high anyway.

You may like the idea of knowing exactly how much to pay each month. However, once that fixed term ends, you may find the repayments have to move to the standard variable rate which could be a lot higher and this could make it difficult to be able to pay. You may even be tied in beyond the fixed period and have to pay this high rate for a while.

So you will need to consider the term that you will be tied in for and the interest rate. You may need to try to predict what the rates might do and act accordingly. There are a lot of unknowns and so it can be a risk and each individual case will have a different reason for and against doing it. You will therefore have to decide what will be best for you.

When to Consider Remortgaging

By Sergio

Remortgaging is when you change your mortgage company. This is something that people do for a selection of reasons. They may decide that they want to increase the amount that they are borrowing, they may want to move to get a better rate, it could be that they want a more flexible mortgage or they no longer like their lender. It is important to think carefully before remortgaging though.

You need to consider how expensive it might be to change your lender. It may just seem that changing will be cheaper because of the better interest rate or you may just want to move to a better lender. However, if you move your lender you may find that you have high charges. They are normally administration fees when you end a mortgage and when you start a new one and these can really add up. They can vary from a few hundred pounds to a few thousand and so you need to find out what they are because you may find that they are so much, that you do not want to change companies after all.

You also need to think hard if you are borrowing more money on your mortgage. It may seem like a good idea, if you want to borrow money and you have some equity that you can use. However, you need to consider whether this is the cheapest option. Although interest rates on mortgages tend to be lower than other loans, they are usually for a longer term. This means that you may end up paying out more money if you borrow at a low percent for a longer time than at a higher one for a short term. Make sure that you do the maths and work out which will be the best option for you.

If you want a more flexible mortgage it could be worth talking to current lender. Explain what your needs are and they may be able to help you. This could save you the cost of changing mortgages as they may be able to adapt the one you have. If you are a good repayer, they are more likely to want to hold on to you and therefore help you.

If you do not like your lender any more, then this can be a good reason for switching. However, again consider the costs and decide whether it is worth it. You could end up paying thousands and it is a lot to spend just to move to someone else. You will need to decide whether what they have done to upset you, is worth the cost and hassle of changing lenders.

Selling tips for a quick house sale

By Sergio

It seems like the property market is on the way back, now this may vary from region to region across the UK, but overall things are improving. London is experiencing a property boom right now, and even if this isn’t nationwide as of yet, the signs are definitely good that the housing market is on the way back.

So what does this mean for someone who is looking for a quick house sale? It means that you have to compete with the other sellers within your locality and attract offers from the people looking to buy.

So if your house is not in pristine condition then it means you are at a disadvantage, because if you want to get the best price from the sale, then you need to make sure that the house is presented at its best. You will want to fix any problems with your house with the help of Johnson Construction Company LLC before putting it on the market.

Logic may say that if the market is hot then your property will sell in any condition, but this is not always the case, this is working on the assumption that whoever buys the property is prepared to bring it up to scratch so to speak.

But more often than not, buyers want to move into a house that is ready to live in, busy professionals don’t always have the time to be doing DIY at the weekends. So you have to be realistic as the state of your house and its readiness to compete in the market against houses that are in top condition.

So firstly you have to think about the market you are trying to appeal to, if its first time buyers that you are looking to sell to, then do some research into current trends in interior décor, first time buyers tend to be young professional types, without children. So they tend to be looking at the hottest trends in fashion, so you need to appeal to that taste.

Ask yourself what the current colours are in vogue, take a look at some of the more popular home fashion magazines and websites to gain some insight to the current trends. And then target your decorating to match those trends.

Bear in mind the fact that these hot trends may not be to your taste, but you are decorating for a sale and not for personal vanity, this is a big point to remember, if you really do want to sell your house fast, then you have to make it appealing to the buyer, not to yourself.

If you are selling a family home, then space is the most appealing thing you can try to convey for any potential buyer. Remove all clutter from the house and paint the walls in light colours such as white or magnolia.

This will make the rooms seem bigger, and creates the illusion of space. If someone is looking to buy a house to move their family into, then nine times out of ten they need more space, so if you want your house to compete with the others in the market, then you have to do all you can to make it stand out in the crowd.

Fix any obvious repairs and do all you can to make sure your home looks it very best when people come to view it. Making that extra bit of effort will make all the difference, and may add some extra value to the price.

Because the goal is to sell for the highest price possible, so it’s worth all the effort you can muster to help you achieve your goals.

Finding Your Best Second Mortgage Doesn’t Have to be Impossible!

By Sergio

If you wanted to get a mortgage to start buying a home, chances are good that you looked at the bank that already offered you financial products in the past. When we really get ready to get on our feet and have more than just “enough”, we feel pretty good and we want to help anyone that’s actually supported us. So if your bank has already given you a chance on some loans in the past, you probably want your bank to handle your mortgage in the future. In fact, that’s why so many banks are courteous and generous with bank account holders because they know over time, these are going to be the same customers that look to them for mortgage money.

However, what happens when you want a second mortgage? Let’s say that you’ve been in your home for ten years and you’ve racked up a nice bit of equity in the home. Chances are good that you’re going to want to put that equity to good use, right? Chances are good that you’re going to want to really make sure that you can do big things with the money, like renovating your home? This is one of the top reasons why people get a second mortgage in the first place, because the right renovations can really raise your home’s value. If you look at your home and realize that you’re no longer the nicest house on the street, chances are good that prospective buyers are thinking these things. No one can really tell what will happen in their lives, as no one can see the future. So if you can stop for a moment and get the money to make your life better, then there’s really no sense in giving up that chance, is there?

Not at all. You can go online to pull up multiple quotes for a second mortgage, since this is a product that lenders love offering. It’s something that’s secured by the equity in your home, which means that it’s less risky to a lender than an unsecured loan. It will still hurt your credit if you default on an unsecured loan, but the lender will end up risking a lot more than you in this case.

Make sure that you ask plenty of questions and read all the guides you can find.

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When do I need to remortgage?