Is now a good time to remortgage in Newcastle?

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.

If I can already afford my current mortgage, why should I remortgage?

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. 

Can I borrow more money for home improvements? 

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. 

Can I borrow more money to fund other means? 

As well as for home improvements, you may be eligible to borrow additional funds, this could include: 

  • Debt Consolidation 
  • Property Investment (e.g., a Buy to Let) 
  • Consumer Purchases 
  • Gift to relative 

Is adding unsecured debt to my credit a bad thing? 

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. 

Will I be offered a remortgage by my current provider? 

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. 

Remortgage Advice in Newcastle

Date Last Edited: April 14, 2023