If you are a homeowner, chances are you have heard the word "remortgage" or even done it in the past. But what exactly is remortgaging, what are the nuances of the process, and how can you benefit from good advice? Simply put, remortgaging involves switching your existing mortgage to a new lender or negotiating terms with your current one. This process can provide you with a range of advantages, from securing a lower interest rate and reducing monthly payments to accessing additional funds for various purposes – let’s explore it in greater detail!

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Standard remortgage & product transfer

If you're a homeowner with a mortgage and your current fixed rate is soon expiring, you may be thinking, "What do I do next? Should I stay with my current lender or switch? How do I choose the right term, and what documents do I need? Has my personal situation changed, and what are my future plans?" As your advisors, we are here to help answer all of those questions and more. We'll assess your situation and preferences and source a tailored deal with either a new or current lender – this can be a simple as a rate switch or something more complex like extending or reducing the overall term, changing the fixed rate, changing the type of the mortgage, or adding another person to the agreement. We have access to thousands of remortgage products with different fixed and tracker options, allowing us to provide highly personalised, tailored solutions that align with your financial goals.

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Additional borrowing – capital raising

Did you know that during a remortgage—depending on your circumstances, current level of mortgage, and property value—you may be able to borrow more? This is also the case when you own a property that is mortgage-free! This additional borrowing, often referred to as capital raising, can provide you with the extra funds you need for various purposes. Let’s see what those reasons could be.

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Home improvements: Remortgaging can help fund all kinds of renovations or upgrades. Whether you’re looking to create a more open-plan layout by knocking down walls, adding an extension to accommodate a growing family, or modernising your kitchen and bathroom, these renovations can significantly improve your home's appeal. Other possibilities include converting a loft into a bedroom, creating a home office, or even landscaping your garden for a more inviting outdoor space. Not only do you create a more enjoyable and personalised environment, but you also increase the potential resale value of your home, making remortgaging an effective strategy for those looking to boost their property's worth.

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Capital raising for a large purchase or gift: Capital raising can also help fund a large expense, such as a new car or wedding, or serve as a monetary gift to people you care about. For many parents, gifting money to their children for a home deposit is a meaningful way to provide support as they embark on the journey of homeownership. By remortgaging and accessing additional funds, parents can leverage the equity built up in their own property to offer a generous gift without jeopardising their financial stability. This financial assistance can be particularly crucial in today’s competitive housing market, where rising property prices can make it challenging for first-time buyers to secure a home.

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Deposit for a Buy-to-Let property: Whether you already are a landlord or are just considering buying your first buy-to-let property, capital raising through remortgaging can be an invaluable strategy for funding a deposit on your next investment. As the rental market continues to grow, securing additional properties can yield significant long-term returns. By leveraging the equity in your existing buy-to-let or residential properties, you can access the funds necessary for a deposit, making it easier to expand your portfolio without relying solely on personal savings. Additionally, the rental income generated from new properties can help cover the increased mortgage payments, creating a sustainable investment model. With our guidance, you can explore the best remortgaging options tailored to your buy-to-let ambitions, ensuring you make informed decisions that align with your investment strategy.

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Debt consolidation: If you’re feeling overwhelmed by multiple unsecured debts and struggle with monthly payments on your credit commitments, remortgaging to consolidate these liabilities can be a solution. By accessing additional funds through your mortgage, you can pay off high-interest debts, such as credit cards or personal loans, and combine them into a single, manageable monthly payment. This not only simplifies your finances but often results in lower overall interest rates—however, although the rates are lower, the repayment period is usually much longer, which can result in the debt being more expensive in the long run. Additionally, consolidating your debts can improve your cash flow, providing you with more breathing room in your budget, but it comes at a price—all the debt you consolidate, previously unsecured, is now secured against your home. Our experts will help you decide whether consolidating debt is the right option for you. As always, our goal is to help you find the right solution.

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THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.

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Buying out a partner: Neither of us is safe from life’s twists and turns. If you own a property together and are going through a separation, you may want to keep the property rather than sell it. In such cases, remortgaging can be an effective way to buy out your ex-partner’s or spouse’s share of the home. By accessing additional funds through your mortgage, you can pay your ex-partner for their share and keep full ownership of the property. This can be a more favourable solution to selling up, particularly if you'd like to keep the place you call home. Our team is here to support and guide you through the process, helping you assess your options and ensuring that you make informed choices as you navigate this situation.

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Other compelling reasons to remortgage:

• For business purposes – raising starting capital.
• To pay your tax bill.
• Extending the lease on your leasehold property.
• Medical expenses.
• School and education fees.
• And more.

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Conclusion

Remortgaging can be a powerful financial tool that offers numerous benefits, whether you're looking to improve your home, consolidate debt, support loved ones, or navigate life changes. By understanding your options and working with our team of experts, you can make informed decisions that align with your financial goals and circumstances. We’re committed to helping you find the right solutions tailored to your unique situation, ensuring that you feel confident and supported throughout the process. If you're considering a remortgage or have any questions, don't hesitate to reach out—we're here to assist you every step of the way.

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YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE. 

YOU MAY HAVE TO PAY AN EARLY REPAYMENT CHARGE TO YOUR EXISTING LENDER IF YOU REMORTGAGE.

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