Archives December 2018

When is best to remortgage?

When is best to remortgage?

To some people remortgage is a little bit of a mystery. So when is it best to take the plunge?

A mortgage is like any long term agreement – you need it to revisit it every now and again to see if its still working for you. And that’s what a remortgage is; it’s looking at this agreement you made some time ago and seeing if it stills works for and your family.

So when is this fabled time?

  1. When interests rates are low. Lenders are always trying to maintain their competitiveness by making sure their interest rates low. This can save you a whole heap of your monthly expenses, if you have had your mortgages for a few years. You can then achieve a new interest rate and lock that in as a fixed mortgage and keep the same rates. Be careful though and speak to a mortgage adviser you trust – your existing mortgage could be a special deal which may not allow a change.
  2. When you own enough equity in your home – When  you only own a portion of your home – the deposit and what you have currently paid off, the rest is mortgaged. The proportions are called the loan to value ratio (LTV). If the price of your house has gone up, your mortgage will be a smaller percentage of the property’s value than it was when you started. So imagine your mortgage is 75% of your home, that means you own 25%, if you remortgage you could get a better deal.
  3. Your fixed rate ends – Fixed rate mortgages are on a set rate for typically 2-10 years. Once this ends your mortgage is moved onto a standard variable rate, which could be higher or it could be lower. So at this point you have an opportunity to shop around for different deals. Make sure you understand when your fixed rate ends, or if it does. To do this speak to your mortgage provider/lender.
  4. If it’s right for you – All of the above could be happening none of the above could apply that doesn’t mean it’s not the right time. Remortgaging is about your time to get the right deal.

With remortgaging it can be tricky business and if you leave your current deal too early or in the wrong way then it may cost you and you could end up getting charged. So ensure that it is the right time for you to remortgage, make sure the next deal works for you. Do you want it to be cheaper? Do you want a shorter term on the mortgage? All different needs for different people.

So make sure you speak to someone you trust and ensure you are making the right decision for you, your finances and your family.

Do you need to get advice for a mortgage?

Do you need to get advice for a mortgage?

Is having a mortgage adviser something that YOU need?

Your home may be repossessed if you do not keep up repayments on your mortgage.

Mortgages can be a complicated thing. There are many different variables to consider and lots of pieces that need to be put in place. There are different types of mortgages, different lenders and they all have different rates, different advantages and disadvantages.  So where do you start?

Well its difficult to say exactly. But there are options that you can go for.


The lenders.

You could go directly to a lender, usually a bank or building society, who must offer you advice when recommending a mortgage to you. They will assess what you can afford based on your own personal finances. They will look at all elements of your budget to understand what repayments you can make, including where your credit rating stands and many more. They will help you get a mortgage with the bank or lender that they are associated with.

The other thing you could do, is look to an independent mortgage broker. An independent mortgage broker is specialist trained and qualified to give you advice in finding the right mortgage for you.  There are different mortgage advisors; those attached to lenders (often banks/building societies), those that have a limited list of lenders and those that look at the whole market.

All FCA advisors have a duty of care to ensure that they give you the correct advice and that they maintain correct standards. Please see the FCA website on how your rights are protected when receiving mortgage advice – here (You are now departing from the regulatory website, neither Coleshill Mortgage Services or Quilter Group are responsible for the accuracy for the linked site).


Why do I need independent advice?

Well you don’t need it is the the truth of it. You can go direct to a bank or lender or work and work with. Absolutely no problem with. But is it the best way? Well that is up to you really. Coleshill Mortgage Services is a whole of market lender. Meaning that the advice they give is based on what is going on in the market right at that time. They are not necessarily constrained by certain products or rates that can be offered to you.

A broker also works for you. Not for anyone else, they work to all the FCA regulations, but they work for their customers. So the advice you get is the right advice for you and no one else. Which means you can make the right decision and hopefully are never confused or unclear about what you are signing up for. And if you are ever not sure. Advice is not to do it. If you are looking at a 25 year mortgage, please don’t take that.


Other Advantages.

There are other advantages of taking on a mortgage advisor either independent or not.

They will speak to lenders on a day to day basis, meaning that they can move things along a little quicker than you might be able to. They may help you to complete the paperwork correctly meaning that the movement and acceptance of your mortgage may happen sooner. They also may have exclusive deals with certain lenders that could help you get an offer that you may not be able to get on your own. This is specifically related to independent mortgage brokers.

Its hard to pin down all elements of getting advice for a mortgage and tell you exactly what you need to do as everyone’s needs are different. The only advice we can give is make sure you make the decision right for you and consider all your options. This means talking to both independent advisors and those advisors attached to a lender (like a bank/building society) to make sure you get the right mortgage for you.

Please look round all the rest of our website to find out more information on what we offer.

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Your home may be repossessed if you do not keep up repayments on your mortgage.