Changing your Mortgage but not your home

Whether your current deal is ending or you want to raise extra money against your home, Brunel Independent Mortgages can assess the best way forwards

Are you looking to switch your mortgage deal? Maybe you simply want to switch mortgage lender.

Whatever your reasons for remortgaging, whether to reduce a debt, release equity or simply switch products, we can offer you expert advice and source the right package for you.

Potential savings could be made by remortgaging on to a lower rate than you currently have with your existing mortgage lender. The chances are, if you have been with the same lender for a number of years, Brunel Independent Mortgages could, by researching the whole mortgage market, find you a better deal that fits your needs and saves you money.

Product transfer or remortgage – Which is your best option?

Product transfer or remortgage –  Which is your best option?

When your current mortgage deal comes to an end, you’ll be faced with two options.

The first is to stay with your current lender and negotiate a new deal with them. This is called a product transfer. The second is to look for a new mortgage altogether with a different lender. This is known as a remortgage.

Before making a decision, it’s worth weighing up the pros and cons of both options. This is where we can help.

Product Transfer – often called a rate switch

Your current lender will usually contact you between 3 and 6 months before your current product ends. They will give you information regarding the new product they are willing to offer you. The rates may be competitive, and we would always consider these when exploring your options. However, more appropriate products may be available elsewhere.

One advantage of a product transfer is there is no underwriting involved and the process is very straight forward. However, if you’re looking to increase the amount you borrow with your existing lender, the process will be more extensive.

If your circumstances have changed and you are no longer eligible to borrow the amount of money required from a new lender, a product switch would still be available as there is no underwriting.

Remortgage

In simple terms, remortgaging involves moving your current mortgage to a new lender. Remortgaging can help your financial health in many ways.

A new lender may offer a more attractive rate than your current lender. We will compare this for you, taking in to account all fees and cost involved.

If you want to increase the size of the mortgage, you may be able to borrow more from a different lender.

It is advisable to review your mortgage on a regular basis to ensure that it continues to reflect your needs and that the interest rate remains competitive. Those that remain on the same rate for the full term of their loan could lose out by paying more money than they need to in the long term. They could also miss out on the chance to repay their mortgage earlier than originally planned.

Legitimate reasons for additional borrowing typically include:

  • Home improvements
  • Property extension
  • Buying an additional property
  • Debt consolidation
  • Providing a deposit for a family member
  • Personal spending

There are various ways of raising additional funds against the value of your property.

Additional borrowing (Further Advance) with your existing lender

This is especially attractive to borrowers who would incur an early repayment charge with their current provider if they were to change to a new lender.

This would involve a new application to your current lender. The lender will apply normal lending criteria and assess affordability. The amount available differs from lender to lender.

Solicitors are not needed with this type of application. However, there are often long delays if you need to apply directly to the lender. Many lenders will allow Brunel Mortgages to apply on your behalf which saves time and makes the process simpler.

Remortgage to another lender

There may be more favourable terms available if you move your whole mortgage to a new lender.

You may also be able to borrow more than with your existing lender, based on their lending criteria.

It’s an opportunity to restructure your borrowing.

Secured second charge

This is a loan secured against your property from a different lender. Your main mortgage stays with your current lender and the new lender secures a separate charge against your property for the additional borrowing.

If your current lender is unable to lend you the amount you require, you could incur an early repayment charge or lose a competitive rate by moving the whole mortgage to a new provider. A second charge is an alternative solution.

Rates offered by second charge companies tend to be higher with extra set up charges. However, depending on personal circumstances this may still be appropriate. A second charge can be a temporary arrangement until you are able to move the whole mortgage to a new lender.