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Undertaking a remortgage in Newcastle, often seen as a complex financial decision, is a step that homeowners consider at various points in their homeownership journey.
Essentially, remortgaging in Newcastle involves the choice to transfer your existing mortgage to a new lender or renegotiate the terms with your current lender.
People opt for remortgaging in Newcastle for various reasons, and when done thoughtfully, it can yield financial advantages.
To gain a comprehensive understanding of the remortgaging process in Newcastle, it’s beneficial to break it down into a series of key steps:
The journey begins with a meticulous evaluation of your current mortgage and financial circumstances. This involves calculating your outstanding mortgage balance, interest rate, and monthly payments, crucial in determining the feasibility of pursuing a remortgage in Newcastle.
Thorough research into the array of available mortgage deals in the market is imperative. Seek out lenders offering competitive interest rates and favourable terms. Seeking guidance from a dedicated mortgage advisor in Newcastle, tailored to your specific situation, can prove invaluable.
Once you’ve selected a suitable mortgage deal, the subsequent step is to complete a mortgage application. The lender conducts a comprehensive evaluation of your application, taking into account factors such as your credit history, income, and property value.
Assessing the current market value of your property may necessitate a professional valuation. Ordinarily, the lender arranges for an experienced appraiser to assess your property.
Legal procedures are integral to the remortgaging process in Newcastle. Engaging a solicitor or conveyancer may be necessary to oversee legal aspects, including property searches and fund transfers.
If your application aligns with the lender’s criteria, you’ll receive a formal mortgage offer. It’s imperative to conduct a thorough review of this offer to ensure it aligns with your financial objectives and expectations.
Once all the requisite checks and paperwork have been finalised, your new mortgage arrangement is concluded. This phase may involve the settlement of arrangement fees and other associated costs.
Once your new mortgage is in place, you’ll embark on the journey of making monthly payments in accordance with the terms of your new arrangement. Consistently meeting these payment obligations is key for maintaining a healthy financial standing.
Homeowners consider the prospect of remortgaging in Newcastle for a wide array of individual reasons, each situation bearing its unique circumstances.
A prevalent motivation is the pursuit of a more favourable interest rate. Securing a lower interest rate can yield substantial long-term savings on your mortgage.
Furthermore, remortgaging in Newcastle is often employed as a means to unlock equity tied up in your property. This accessible equity can be utilised for various financial objectives, such as home improvements, debt consolidation, or a multitude of other financial goals.
Changing your mortgage type is another viable reason for remortgaging. As your financial circumstances evolve, your existing mortgage type may no longer align with your needs. Transitioning to a different mortgage type can offer increased flexibility or more advantageous terms.
Finally, some homeowners opt for remortgaging as a means to consolidate high-interest debts, including outstanding credit card balances or personal loans, into their mortgage. This results in lower monthly payments and simplifies financial management.
Remortgaging holds the potential to deliver several benefits, including the prospect of reduced monthly payments, access to home equity for financial pursuits, the opportunity to consolidate high-interest debt, and the flexibility to adapt your mortgage to better suit your evolving financial requirements.
In conclusion, remortgaging in Newcastle is a dynamic process that empowers homeowners to transition their mortgage to a new lender or negotiate revised terms with their current mortgage provider.
Individuals embark on this journey for a multitude of reasons, ranging from securing improved interest rates to accessing the wealth tied up in their homes.
The remortgaging process encompasses several essential steps, such as assessment, research, application, valuation, legal procedures, and the finalisation of the new mortgage terms.
When considering the prospect of remortgaging in Newcastle, it is imperative to conduct a thorough evaluation of your options and, when necessary, seek expert remortgage advice in Newcastle to make informed decisions about your financial future.
A mortgage broker in Newcastle is a type of business that specialises in arranging or negotiating mortgages on behalf of customers who are homeowners, home buyers, or landlords.
Essentially, they act as intermediaries between the borrower and the mortgage lender, working to secure the most suitable mortgage for their customers’ needs.
When someone takes out a mortgage, they are borrowing money from a mortgage lender, which is then secured against their property. The borrower then pays back the loan over a set period of time through monthly payments.
A mortgage broker in Newcastle’s role is to help their customers look at the various types of mortgages available, compare rates and terms from different mortgage lenders, and ultimately secure the best possible deal for them.
When it comes to obtaining a mortgage, a homeowner, home buyer or landlord can choose to search for and arrange their own mortgage, though generally it is more common for them to seek the help of a mortgage broker in Newcastle, due to the broad range of services they offer.
One of the most important services provided by a mortgage broker in Newcastle is the ability to compare your circumstances against thousands of products, from various mortgage lenders. In contrast, going directly to a bank limits you only to their specific deals.
Although the best deal with that mortgage lender may be the best option for you, though this is not always guaranteed. A mortgage broker in Newcastle can often offer exclusive deals and make comparisons for you, ensuring that you obtain the best deal available, across all mortgage lenders.
The responsibilities of a mortgage broker in Newcastle extend beyond that, as they are involved in various tasks before, during and after the mortgage process. The services provided may differ from one broker to another.
At our company, for example, we specialise in recommending suitable insurance options for homeowners. While it is an optional extra cost, our mortgage and protection advisors have a responsibility to guarantee that you can remain in your home, regardless of any unforeseen circumstances.
When you first start the mortgage process, you will usually be in contact with a mortgage broker in Newcastle’s appointment booking team. They will gather some initial information from you and help you find a suitable time to speak with a mortgage advisor in Newcastle that works around your busy schedule.
Alternatively, you can book an appointment directly through the website of many mortgage brokers in Newcastle, including our own.
This is often done through a user-friendly appointment booking system where you can choose between telephone or video calls, bypassing the need to speak with anyone before your appointment.
During your appointment with your mortgage advisor in Newcastle, you will provide them with more detailed information to help them better understand your financial situation and goals. They will then look at a range of mortgage deals and recommend the most suitable option for you.
Some mortgage brokers in Newcastle have access to a limited number of niche mortgage lenders, while others have a larger panel of mortgage lenders, like us.
Although we’re not whole of market, we have a wide range of mortgage products available, from standard to specialist. Once your mortgage advisor in Newcastle has found a deal you’re happy with, they will look to secure you an agreement in principle (AIP), which confirms your mortgage eligibility.
An AIP is typically required by estate agents when you make an offer on a property and shows the seller that you are committed to your offer and financially capable of proceeding with the sale.
At this point, you will also need to submit your documents to your mortgage broker in Newcastle, which can vary depending on the mortgage lender and your individual circumstances.
Standard documents usually include proof of ID, income, and deposit, as well as the last three months’ bank statements and payslips. If you are a foreign national, you will also need to provide proof of VISA or the right to work in the UK, which can typically be done with a share code, if you migrated from the EU.
Depending on your circumstances, you may also need to provide additional documents such as a P60, business bank statements and tax calculations/year overviews if you are self-employed, or an employment contract if it is applicable to your line of work.
Once the previous steps have been completed, a mortgage broker in Newcastle will typically review and verify your documents before providing you with a mortgage illustration that outlines the agreed-upon deal, before submitting it to the mortgage lender.
After the submission, the waiting game begins for you until the mortgage lender gets back in touch with your mortgage broker in Newcastle to confirm whether or not you have been approved for the mortgage.
The work doesn’t stop there, as mortgage advisors in Newcastle and administrators still have their own steps to complete. They’ll send copies of your documents to the mortgage lender and work with solicitors
During this time, our mortgage advice team will be available to advise you on property surveys. You can typically choose from three types of property surveys: basic valuation, homebuyer’s valuation, and full structural survey.
Similar to how they recommended a mortgage deal during your initial mortgage appointment, our team will be able to best recommend which property survey you will need to take out.
Whilst you wait for the end result of your mortgage application process, you may have questions or concerns about what is happening. A mortgage advisor in Newcastle will keep you regularly informed, often via email, so that you are never left in the dark regarding your mortgage progress.
In due course, the mortgage lender will provide you with the outcome of your mortgage application, hopefully, a positive one. If your application is approved, you will receive a formal mortgage offer.
After this, your solicitors will take over to complete the necessary legal work and finalize your mortgage deal, allowing you to enjoy your new property. Nevertheless, a mortgage broker in Newcastle can still offer further assistance.
At Newcastlemoneyman, we go the extra mile by getting in touch with our clients about six months before their mortgage deal expires. If you previously took out a mortgage with us, we will offer you remortgage advice and assist you in taking the next step towards owning a property.
There are various ways in which a mortgage broker in Newcastle can help a mortgage applicant. For instance, they can save them both time and money by streamlining the mortgage process and minimising stress levels.
Additionally, mortgage brokers in Newcastle can offer a broader range of mortgage deals, including exclusive and specialised options. At Newcastlemoneyman, we prioritise our customers’ best interests and work hard to save them money and to help secure their financial future.
Our customer reviews show our commitment to building long-lasting relationships and going above and beyond for our customers. We also strive to reduce our customers’ costs and fees by negotiating with mortgage lenders or incorporating fees into their mortgage balance.
During our free mortgage appointment, our mortgage advice team will discuss all costs and fees involved in the mortgage process to ensure transparency and avoid surprises down the road.
If you are looking to save time, money, stress, and worries by having an experienced mortgage professional handle the bulk of the work, then hiring a mortgage broker in Newcastle may be the right choice for you.
At Newcastlemoneyman, we specialise in providing expert mortgage advice in Newcastle to a diverse range of applicants, including those looking at first time buyer mortgages in Newcastle, buy to let mortgages in Newcastle, and more.
To speak with one of our mortgage advisors in Newcastle, simply use our online booking feature to schedule a free mortgage appointment or remortgage review with a dedicated expert. Contact us today to see how we can help you achieve your mortgage goals.
As a homeowner in Newcastle, if you don’t plan on selling your home and moving, and you have a fixed-term mortgage, you typically consider remortgaging around three months before your fixed period ends. While this may seem early, it allows enough time for the remortgage process to take place before your initial deal expires.
Some people may choose to remortgage even earlier, six months or more before the end of their current deal. So, the answer to the question, “can I remortgage early?” is yes, it is possible. However, just because you can, doesn’t necessarily mean you should.
When you are looking to remortgage in Newcastle, there are three common types of mortgages to consider: tracker, discount rate, and fixed rate.
The first is tracker mortgages. Tracker mortgages track the Bank of England base rate, which can lead to lower costs when interest rates are low but can also become expensive when rates are high. Some tracker mortgages have “collared” rates, meaning the interest rate won’t drop below a certain point.
Discount rate mortgages are a type of variable rate mortgage and are often offered by mortgage lenders at a discount to their standard variable rate mortgage.
Fixed-rate mortgages are the most popular among the three options. They allow you to lock in an interest rate for a specified number of years, typically 2-5 years. While there is a potential downside of paying more if interest rates drop, fixed-rate mortgages are more likely to provide benefits as interest rates are more likely to rise.
Remortgaging early is an option for homeowners who want to make changes to their mortgage before their fixed period is due to end.
Reasons to remortgage in Newcastle early may include securing a better rate, funding home improvements, or consolidating debts. However, it’s important to keep in mind that remortgaging early may come with its own set of challenges and additional costs, so it’s best to carefully consider the decision and weigh the potential benefits and drawbacks before proceeding.
Although it’s typical to remortgage when your fixed rate mortgage is approaching its end, there may be instances when you wish to act sooner.
If there are products available in the market with lower rates of interest, you may want to try and switch early. However, this action may come with early repayment charges (ERCs), but the savings you could achieve by remortgaging in Newcastle could potentially outweigh these charges.
The housing market tends to fluctuate, which can make it more beneficial to remortgage earlier rather than waiting until the end of your fixed period. For example, your interest rate may have risen by a significant amount, say 2-3%, over the course of the 2-5 years that you were fixed in. If you are still a year away from being able to remortgage in Newcastle without facing additional charges, it may be worth remortgaging early, even if it means paying more upfront. This way you may be able to secure a lower interest rate for the next 2-5 years.
In addition, remortgaging early could be a great opportunity for debt consolidation. This allows you to combine all your unsecured debts into one manageable monthly payment, freeing up more income for other expenses. Although this may result in paying more overall, it can help you manage your finances much easier and bring greater financial stability.
You should think carefully before securing other debts against your home. By adding your unsecured debts to your mortgage, which is secured on your home, you are potentially putting your home at risk if you cannot make the required repayments.
Although the total monthly cost of servicing your debt may have reduced, the total cost of repayment may still have risen as the term of your mortgage is longer than it may have taken to repay the debts originally.
The potential drawback of remortgaging in Newcastle early is facing repayment charges. The amount of these fees varies based on how soon into your term you are.
Typically, you’ll pay less if you remortgage closer to the end of your fixed period. For tracker mortgages, there’s no fixed period, but there’s typically an introductory period during which you may face fees.
These charges are often substantial, which is why many people avoid them. Before making a decision, it’s always wise to consult with your mortgage lender or a mortgage broker in Newcastle, like us, and get an understanding of any early repayment charges that may apply if you choose to exit your deal before its term ends.
At the end of the day, this decision is up to you, it is your mortgage and your finances. Although, you should seek mortgage advice in Newcastle prior to making a decision to get insight from a mortgage expert.
If you have weighed up your options and feel like it is best for you to remortgage in Newcastle early, then by all means go ahead. Just make yourself aware of all of the costs involved before acting on it.
Take advantage of our free remortgage review service today and connect with one of our experienced mortgage advisors in Newcastle. Your review will consist of a discussion between you and your mortgage advisor in Newcastle about your remortgage aims and a look at your personal and financial situation to determine which remortgage route is best for you.
We are available 7 days a week, make sure to get in touch at a time that best suits you.
Any homeowner in Newcastle wouldn’t dream that they’ll miss a mortgage payment, but something like an illness or family emergency can occur, causing a financial struggle, especially for those with low-income and minimal savings.
It can be more challenging for those who don’t have any insurance policies in place that could cover their mortgage payments should any unforeseen circumstances occur.
Here, we felt it was best to answer the following questions: what should you do if you are in this situation and think you will miss a mortgage payment, and how can you improve your credit score afterwards?
If you think or know you’re going to miss an upcoming payment on your mortgage, you must inform your lender immediately. Once you have missed a payment, this will instantly show on your credit record, which will heavily impact your ability to remortgage when your old mortgage is coming to its end.
Depending on your lender’s criteria and circumstances, there may be an alternative that can help you avoid missing a payment. Your lender will offer their support and guidance to borrowers going through a difficult time.
There is nothing wrong with feeling embarrassed. Chances are you are not alone – other people will be in a similar or worse situation. You won’t be the last or the first to contact their lender about being in this position.
If you miss one payment on your mortgage then this isn’t the end of the world, although this may have a negative impact on your credit rating, depending on how quickly this is resolved and how well you communicate with your lender.
Generally, if you fail to pay your mortgage, your lender will inform the credit referencing agencies, and this will have a negative impact on your credit score. However, as mentioned above, lenders will usually have a grace period after the payment due date. This will vary from lender to lender.
Your lender will usually try to work with you and help. In some instances they will set up a payment plan, a short-term solution that can get you back on track with your payments.
Falling behind on multiple mortgage payments can lead to defaulting on the loan agreement, meaning that your lender could take repossession action. Repossession and eviction are the last resort for any lender, they will usually negotiate with you and help make a repayment agreement. It is recommended to reach out to a Mortgage Advisor in Newcastle prior to taking any payment plans etc.
Our specialist mortgage protection advisors in Newcastle will give you the option and recommend taking out the relevant insurance to protect you and your family from financial burden during any unforeseen health issues.
Depending on which protection insurance you take out, these will help pay for your mortgage and bills in the event you are off work sick or critically ill.
If you need any additional support or guidance, please get in touch to speak to one of our specialist mortgage and protection advisors in Newcastle and find out which insurance will benefit you.
If you have made the decision to stay in your current property as appose to moving home. Then Remortgaging in Newcastle will be the next step in your home-buying journey.
Choosing to remortgage is a good way to stay in your current property with more favourable interest rates. This can be done by being transferred from your existing deal to a more suitable deal. As an expert remortgage broker in Newcastle, our team of experienced Mortgage Advisors in Newcastle can help.
The banks rely on their customers not knowing that they can shop around for a much more suitable deal. We tend to find in some cases you will find cheaper offers elsewhere. By speaking with one of our knowledgeable mortgage advisor in Newcastle, they can help compare deals or you can seek these out yourself through a price comparison site.
Going forward, you will find a suitable remortgage deal for your circumstances. However, price comparison sites usually look for your best deal on an interest basis.
As long as you have been on your current mortgage deal for some time, there is a chance that you could be on a low Bank of England tracker deal. You could even be paying less than 1% so, it may be best for you to stay with that mortgage deal. This could become an issue if the base rate eventually rises as well as your payments.
You can, depending on if you pass the affordability checks and there is a reasonable amount of equity in the property. Going forward, you may be able to increase your remortgage for future home improvements.
Remortgaging for home improvements gives you an updated home and the chance to increase the value of your property. Remortgaging can help customers in the process of updating their kitchen, converting a loft, or creating a home office.
As well as for home improvements, you may be eligible to borrow additional funds, this could include:
Adding more debt to your mortgage is not the best idea. Because you will end up paying back more interest overall through extending the term of your debts to make the payments lower.
Another risk of this is that you are taking debt, which is not secured and securing it on your home. It could create the potential risk of having your home repossessed. Something that will likely be a problem would be consolidating debts that you can afford or credit cards that are 0% interest.
That said, this highlights the importance of speaking to a qualified Mortgage Advisor in Newcastle prior to securing any debts against your home. An option you could take is to reduce your monthly outgoings to avoid missed payments. By doing this, you are decreasing the risk of your credit rating being in a bad state.
A lender may offer a “Product Transfer” or “Retention” product. This allows the lender to provide you with a new deal to stay with them. You would need to contact your provider directly to see what is available to you, however, this option isn’t guaranteed.
We tend to find some lenders that will allow you to make a product switch online without providing further information or advice.
Staying with the same provider and switching products might be an easier option, however, putting a new application to a different lender may save you a lot of money.
You will find that many banks would offer favourable rates to new borrowers over existing ones. There will be a time when lenders will take a more ethical approach that could have a positive change in customer loyalty.
As you move ever closer towards the end of your mortgages’ initial fixed period, the next step would be to take a look at your options for a remortgage in Newcastle. If you took out this remortgage with the same mortgage lender, you would be doing a product transfer.
Not all homeowners may be aware of this option, especially if you have been doing your own research ahead of your fixed-term ending and only reading about remortgages. In truth, product transfers are on par with, if not arguably more popular than a remortgage in Newcastle.
A remortgage is where you will take out a new mortgage to replace your previous mortgage, with a new mortgage lender.
Providing you have a straightforward case, this will come with likely lower interest rates and monthly repayments. You will need to submit documentation in order to qualify, however.
On the other side of the coin, with a product transfer, you will be taking out a new mortgage with the same mortgage lender you were previously with.
So long as your circumstances are the same, you will typically not need to submit any further documentation to the mortgage lender, meaning you’ll likely have a much quicker process as you choose a new deal you qualify for and switch to that from your previous one.
The main reasons as to why a homeowner may instead look to do a product transfer, are pretty appealing ones, the one that stands out the most being that you may actually save yourself money in doing so.
This is because you won’t have any need for solicitors or a valuation, so those fees will not be present. You also may save yourself from having to pay a redemption fee or early repayment charge (though you might still have mortgage arrangement fees).
It may also save you a lot of time during your process and allow for an easier service. Remortgages in Newcastle can often take some time, whereas because the mortgage lender already knows you and probably won’t want documentation, it can go much quicker.
Contrary to the latter discussion point, some homeowners may instead opt for a remortgage in Newcastle. The reasons this is a popular choice for many, is because you usually have a range of deals to choose from.
In remortgaging, you will have access to more financial institutions than just your current mortgage lender, with potentially better deals available if you were to go elsewhere. If you do find a better rate than you are currently on, you will no doubt save money in the long run.
Additionally, a product transfer only gives you the possibility of taking out a new mortgage on the same term. A remortgage, on the other hand, will allow for you to possibly reduce your term. This in turn, could make your next remortgage process go much easier.
Another popular reason why a homeowner may do this, is to remortgage to release equity (equity being the difference between what the property is worth and your remaining balance), as a means of funding possible home improvements, to put down a deposit for another property, and more.
Releasing equity doesn’t quite apply when you are taking out a product transfer, though you may be able to arrange a product called a further advance. Book a free mortgage appointment with a mortgage specialist to discuss your options for a further advance or product transfer.
As a general rule of thumb, because you will be staying in the same property, with the same mortgage lender, you will not need to hire the services of a solicitor for a product transfer.
Where this will become a necessity, is if you are looking to make any changes to your mortgage terms, such as removing or adding a person to or from your mortgage. You will most likely need a conveyancer or solicitor for this.
Generally speaking, you will not need to have a credit check taken out on you for a product transfer. This may vary between some mortgage lenders, however. The reason this tends to be the case, is because the mortgage lender will already know that you are trustworthy with repayments.
Alternatively, if you have had any credit problems during your current mortgage or you are remortgaging with another mortgage lender to achieve something like to release equity, you may have a further credit check taken out on you.
When you do a product transfer, you may need to look at whether or not you have any future plans for moving home in Newcastle. Your current deal may not give you the chance to port your mortgage to a new home.
Taking out a remortgage in Newcastle instead of a product transfer, can allow you to have the flexibility to port your mortgage if it becomes necessary.
When you contact a member of our dedicated team for remortgage advice in Newcastle, they will be able to take a look at your case and review what you are looking to achieve.
Not only will our team be able to get you through your mortgage process in a quick and efficient manner, but you’ll benefit from the selection of mortgage deals available to you, thanks to the vast amount of mortgage lenders we have on our panel.
Our service goes beyond just your mortgage process though, we truly do care about our customers. If you’re looking to product transfer and we think you’d be better off with a remortgage instead, we will say so. The same applies the other way around too.
We believe in a wholly transparent and honest service with the customer, putting you first. To discuss your options for a product transfer, or for further remortgage advice in Newcastle, book your free remortgage review and we will look at how we can help you.
If you are diagnosed with a critical illness, it can severely impact your finances as you may need some times off work for your treatment and recovery.
Critical illness insurance pays out a lump sum payment when you are diagnosed with one of the specified illnesses covered by your policy.
Here Malcolm has compiled a video to talk to you about the significance of having the correct insurance in place for your situation.
If you are looking for critical illness advice in Newcastle, please get in touch to speak to a Life Insurance Specialist in Newcastle. We give all/existing customers a free, no-obligation protection review that can often be arranged on the same day. During this consultation, you’ll get teamed up with one of our Specialist Mortgage Advisors in Newcastle.
They will look at any existing policies you have in place and assess their suitability, then recommend you with the best insurance policy that matches your circumstances and meets your monthly budget.
Some of the illnesses covered by critical illness policies differ between providers. To give you an idea, certain types of Cancer, Heart attack & Stroke are covered as standard by most insurers. However, it’s vital that you read the policy document thoroughly to understand what is and isn’t covered.
You need to be honest and tell the truth when filling your application; otherwise, you are at risk of voiding your entire policy.
Having a pre-existing condition does not mean that you will be unable to find someone that will offer you critical illness insurance.
Throughout your mortgage journey, you will experience a mix of highs and lows.
Whether you have settled in your dream home, started with a stepping stone property to enter the property market, or invested in a property for income generation, there will come a time when your initial fixed-rate or introductory period is ending.
This is an important point where you have several options to consider. One option is to sell your current home, either to upsize or downsize. This allows you to find a property that better suits your changing needs and circumstances.
For investors, selling the property to tenants or another buyer opens up opportunities to explore new investment ventures and potentially increase your returns.
The most common and widely chosen option is to pursue a remortgage in Newcastle. This involves switching your existing mortgage to a new one with different terms, such as a new interest rate or mortgage term.
The first step in understanding a remortgage is to familiarise yourself with what it means. A remortgage involves obtaining a new mortgage to repay your existing mortgage, using the funds released in the process.
When it comes to remortgages in Newcastle, there are numerous options available, ranging from significant decisions to more minor considerations. To look deeper into the topic and gain an in-depth understanding of remortgages, we have created a helpful video guide.
In this video, Malcolm Davidson, our company director & mortgage advisor in Newcastle, and the host of our YouTube channel MoneymanTV, provides valuable insights into all the essential aspects of remortgages.
Typically, when you initially secured your mortgage, it was likely set for a period ranging from 2 to 5 years, featuring fixed or discounted rates. Alternatively, you may have opted for a tracker mortgage, where your interest rate fluctuates in line with the Bank of England’s base rate.
As this initial mortgage deal comes to an end, you will typically be transferred to your mortgage lender’s standard variable rate (SVR). An SVR mortgage operates differently, with an interest rate that can change at the discretion of your lender.
Unlike a tracker mortgage that closely follows the Bank of England’s base rate, an SVR mortgage can be riskier for homeowners. Your mortgage lender is not obligated to align their rates with the recommended rate and may charge above it.
As a result, SVR mortgages tend to be more expensive for homeowners, and it is uncommon for a mortgage advisor in Newcastle to recommend staying on this type of mortgage.
Instead, many homeowners in Newcastle choose to remortgage onto a new deal, typically a new fixed-rate mortgage. This allows them to secure more favourable and consistent interest rates, resulting in potential savings on their monthly mortgage repayments.
As your fixed or introductory period comes to an end, you may find yourself needing a change in your living space. This could be due to the need for an extra room, additional living space, or the growing trend of creating a home office.
Traditionally, the solution would be to move to a new property that better suits your new requirements. This can be disheartening considering the time and effort you have invested in your current home, which has likely become a significant part of your life.
The good news is that there is an alternative option: you can make the desired changes to your current home while staying in it. Many homeowners explore the possibility of accessing funds from the equity in their home to finance renovations, modifications, or extensions that meet their new needs.
Although it may involve some stress in terms of obtaining planning permission and managing the project or funding, it can be argued that this route is less stressful and even more rewarding than selling your home, purchasing a new one, and going through the process of moving.
Over time, these home improvements can prove to be a wise investment. By creating more space and incorporating high-quality craftsmanship, the value of your home is likely to increase. This means that if you ever decide to sell, you have the potential to make a greater return on your investment.
Sometimes, homeowners consider a remortgage in Newcastle to make changes to their mortgage term. This typically involves either reducing the length of the term or switching to a more flexible product.
Reducing the term of your mortgage means that you won’t be making mortgage payments for as long, freeing you from long-term commitments. It’s important to note that this may result in higher monthly mortgage costs. Generally, longer mortgage terms come with lower monthly payments.
Another option is to remortgage in Newcastle onto a more flexible deals. This flexibility can be advantageous for many homeowners, making it an appealing choice.
With a flexible mortgage, you may have the ability to overpay on your mortgage, allowing you to pay it off more quickly. Additionally, you might be able to transfer your mortgage and interest rates to a new property if you decide to move in the future.
While the idea of a flexible mortgage sounds appealing due to the freedom it offers, it often comes in the form of a tracker mortgage linked to the Bank of England’s base rate.
This means that your monthly mortgage payments could fluctuate as the base rate changes, resulting in potentially unpredictable payment amounts each month.
Every homeowner will find that their property holds a certain level of equity, which represents the difference between the outstanding mortgage balance and the current value of the property.
For example, if you have a house valued at £130,000 and still owe £70,000 on your mortgage, you have £60,000 of equity. As mentioned earlier, this equity can be utilised for various purposes such as home improvements, modifications, renovations, and extensions.
Equity can also serve other purposes depending on your needs and circumstances. It can be used to cover long-term care costs, pay off an interest only mortgage, supplement your income, or even fulfill personal desires like a family holiday – within reasonable limits, of course.
In some cases, landlords with buy to let mortgages in Newcastle may opt to remortgage their property to release equity, using the funds as a deposit for further additions to their property portfolio.
If you’re a homeowner aged 55 or older and your property has a minimum value of £70,000, it may be worth exploring your options for equity release or considering alternative solutions.
To learn more about later life lending or determine if you qualify for such opportunities, feel free to book a free later life mortgage appointment and have a discussion with one of our dedicated later life mortgage advisors in Newcastle.
To understand the features and risks of equity release and lifetime mortgages, ask for a personalised illustration.
A lifetime mortgage may impact the value of your estate and it could affect your entitlement to current and future means-tested benefits. The loan plus accrued interest will be repayable upon death or moving into long-term care.
Consolidating debt is a significant reason why many individuals seek remortgage advice in Newcastle. They often aim to pay off accumulated unsecured debts over a period of time.
Although the concept may appear straightforward, a remortgage in Newcastle for debt consolidation considers various factors.
The amount you can borrow depends not only on the outstanding unsecured debts and property value but also on your credit rating. This may impose limitations on your borrowing capacity.
Moreover, to settle your previous mortgage and cover your debts, you will likely need to borrow a higher amount than your remaining mortgage balance. Consequently, this may result in higher monthly payments than initially anticipated.
While it may not be an ideal situation, it’s reassuring to know that there are options available if you require assistance with your finances.
Even if your credit rating has declined, there may still be possibilities, although it is essential to seek specialised remortgage advice in Newcastle. It’s important to note that even with professional guidance, proceeding with the remortgage may not always be feasible.
You should think carefully before securing other debts against your home. By adding your unsecured debts to your mortgage, which is secured on your home, you are potentially putting your home at risk if you cannot make the required repayments.
Although the total monthly cost of servicing your debt may have reduced, the total cost of repayment may still have risen as the term of your mortgage is longer than it may have taken to repay the debts originally.
As you approach the end of your mortgage term and contemplate your next steps, such as a remortgage in Newcastle, it is highly recommended to reach out to a reliable and committed mortgage broker in the area.
By consulting with a mortgage advisor in Newcastle, you can receive a comprehensive evaluation of your circumstances and future aspirations.
This will enable them to guide you in determining the most suitable course of action. Our goal is to ensure that this process is smoother and faster than your initial mortgage journey.
First time buyers in Newcastle, embarking on the journey to homeownership in Newcastle requires careful consideration of various factors, and one of the most critical is your credit score. A healthy credit score not only opens doors to better mortgage deals but also reflects your financial responsibility. Here, we will delve into specific strategies tailored for Newcastle residents to boost their credit scores and enhance their prospects of securing an ideal mortgage.
When you apply for credit, lenders conduct a “hard inquiry” on your credit report. Too many of these inquiries within a short period can negatively impact your credit score. In Newcastle, it’s essential to be mindful of the number of credit applications you submit. Instead of making numerous applications in a short timeframe, consider spacing them out strategically. This approach not only minimise the impact on your credit score but also demonstrates responsible financial behavior.
Being registered on the electoral roll in Newcastle can positively influence your credit score. Lenders often use this information to verify your identity and address. Ensure you are registered to vote at your current address, as this not only boosts your creditworthiness but also provides a stable reference point for lenders.
Understanding your credit limits is crucial for effective credit management. In Newcastle, regularly review your credit card and overdraft limits to ensure they accurately reflect your financial situation. This knowledge empowers you to manage your credit utilization effectively, a factor that plays a significant role in determining your credit score.
Accuracy in your address history is pivotal for a reliable credit report. In Newcastle, regularly review and update your address details with credit reference agencies. Mistakes in your address history can lead to credit report inaccuracies, potentially affecting your credit score. Be vigilant and ensure that all your past and present addresses are correctly recorded.
Timely payments are the cornerstone of a positive credit history. Newcastle residents should meticulously manage their credit accounts, making payments on time and in full. Late payments or defaults can have a lasting impact on your credit score, making it crucial to stay on top of all financial commitments.
Financial associations, such as joint accounts or shared credit, can impact your credit score. In Newcastle, regularly review and, if necessary, sever financial ties with individuals whose credit behavior may affect your own. Being aware of these ties and managing them appropriately ensures that your credit score accurately reflects your individual financial responsibility.
You may eventually feel like you’ve outgrown the property you’re in, whether it’s due to having children, moving in with a partner or just wanting more space. You may also need some repair work carrying out, for example, re-roofing your property. These are things that we find customers are looking at doing.
Though moving home seems like the right choice, it can become a rather mentally challenging process for homeowners. Somebody has to come and value your property, you have to contact with the estate agent, the property has to go on sale. Following that you’ll have people coming in and out to view your home etc. It’s a long and stressful cycle that many aren’t fond of.
Not only do home improvements give you a better quality property with the option of more space, but there’s a chance you may save money on various fees and can also greatly increase the value of the property for when you do decide it’s time to sell up.
Whilst it can save money, it’s worth remembering that home improvements come with their own costs. These can include;
In order to progress forward with any home improvements, you may need to release equity from your home. To do this you will need to take out a Remortgage which will enable the equity to be released from the property to put towards the plans you wish to put in place.
You’ll need to speak with a mortgage broker in Newcastle in order to get this going. Remortgages tend to go a lot smoother and quicker than the first time around, so you’ll hopefully be enjoying a nice and easy process once you’ve been assigned your dedicated and experienced remortgage advisor in Newcastle.
At this time of writing, right now may be the best time to jump into this. Interest rates are incredibly low, allowing for your dream kitchen or conservatory plans to be underway.
We have remortgage advisors in Newcastle with many years of experience working all throughout the day to answer our customers’ enquiries. If you’re looking to Remortgage your current property for home improvements or would like to further discuss the pros and cons of that versus moving home, get in touch and an advisor will run through any of your questions.
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Newcastlemoneyman.com & Newcastlemoneyman are trading styles of UK Moneyman Limited, which is authorised and regulated by the Financial Conduct Authority.
UK Moneyman Limited is Registered in England, No. 6789312 | Registered Address: 10 Consort Court, Hull, HU9 1PU.
Authorised and Regulated by the Financial Conduct Authority.
We are entered on the Financial Services Register No. 627742 at www.register.fca.org.uk
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Newcastlemoneyman.com & Newcastlemoneyman are trading styles of UK Moneyman Limited, which is authorised and regulated by the Financial Conduct Authority.
UK Moneyman Limited is Registered in England, No. 6789312 | Registered Address: 10 Consort Court, Hull, HU9 1PU.
Authorised and Regulated by the Financial Conduct Authority.
We are entered on the Financial Services Register No. 627742 at www.register.fca.org.uk
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