What Does Remortgaging Mean?
Remortgaging typically occurs when the initial rate of your mortgage (whether fixed, tracker, or another type) is about to end. Rather than shifting to your lender's Standard Variable Rate (SVR), which fluctuates at the lender's discretion, many borrowers opt to explore other rates offered by their current or different lenders. This process is known as a Product Transfer (if you stay with the same lender) or Remortgage (if you switch to a different lender).
However, remortgaging isn't just for securing better rates. It can be a viable option for several reasons, including relieving financial hardship, funding home improvements, or providing financial support to family and friends. Whatever your reason, it's crucial to understand the potential impact of remortgaging before making any decisions.
Our role at Finance Factors is to help you navigate these options and make informed decisions that benefit your financial wellbeing. We offer a wide choice of mortgages, ensuring you have the best options at your disposal.
What Does a 2nd Charge Mean? And What Can I Use a Second Charge Mortgage For?
A 2nd Charge mortgage, also known as a secured loan, allows you to borrow a lump sum that is repaid alongside your existing mortgage over a fixed term. This type of mortgage is secured against your property, giving the lender the right to repossess the property if you fail to make repayments.
Second charge mortgages can be used for various purposes without affecting your primary mortgage. They might be a cheaper option if your existing mortgage has high early repayment charges or if you want to retain a particular product (like a fixed rate). Many people use second charge mortgages to fund home improvements, add value to their property, or even raise a deposit for a family member's first home or a buy-to-let investment.
While interest rates on second charge mortgages are often higher than those on first charge mortgages, they are generally lower than personal loans due to the loan being secured against your property. The rate will depend on the loan amount, term length, and the equity in your home.
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Remortgages: Frequently Asked Questions
What is remortgaging?
Remortgaging involves switching your mortgage to a new deal, either with your existing lender or a different one, often to secure better terms or release equity.
When should I consider remortgaging?
Consider remortgaging when your initial mortgage rate is about to end or if you need to relieve financial hardship, fund home improvements, or support family.
What is a product transfer in terms of remortgaging?
A product transfer is when you switch to a new mortgage rate with your current lender, instead of moving to their Standard Variable Rate (SVR).
What is a second charge mortgage?
A second charge mortgage, or secured loan, allows you to borrow a lump sum secured against your property, repaid alongside your existing mortgage.
What can I use a second charge mortgage for?
Second charge mortgages can be used for home improvements, raising a deposit for family, or retaining a favourable mortgage product, among other purposes.
Are interest rates higher for second charge mortgages?
Yes, interest rates on second charge mortgages are generally higher than first charge mortgages but lower than personal loans due to the loan being secured against property.
How can Finance Factors help with remortgaging?
Finance Factors provides clear and impartial advice to help you navigate remortgaging options, ensuring you make informed decisions that benefit your financial wellbeing.
By considering remortgaging options and understanding second charge mortgages, you can make informed decisions that align with your financial goals. At Finance Factors, we are dedicated to guiding you through these choices with professional and authoritative advice.
Phone: 07785 954074
Address: 2 Kingsbroom Court, Kingswood, Maidstone, England, ME17 3ST
Email: kbl@financefactors.co.uk
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE OR OTHER LOANS SECURED AGAINST IT.
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Finance Factors is a Trading style of Finance Factors LTD who are an Appointed Representative of Advice Solutions LTD which are Authorised and Regulated by the Financial Conduct Authority. The Financial Service Register Number is 961681.
The Financial Conduct Authority does not regulate some forms of Buy to Lets.
There may be a fee for mortgage advice. The precise amount will depend on your circumstances, but will be agreed with you before proceeding.
Finance Factors is a Limited Company. Registered Address: Finance Factors Ltd, 2 Kingsbroom Court, Kingswood, Maidstone, England, ME17 3ST, United Kingdom. Registered in England and Wales under number 15814885.
We always aim to provide a high-quality service to our customers. However, if you encounter any problems, in the first instance please write to the registered address above, email or call Finance Factors outlining your complaint, if we are unable to resolve this, you can take your complaint to an independent Ombudsman. Our advice is covered under the Financial Ombudsman Service (www.http://www.financial-ombudsman.org.uk/consumer/complaints.htm).
The guidance and/or information contained within this website is subject to the UK regulatory regime and is therefore targeted at consumers based in the UK. Some calls maybe recorded for training and monitoring purposes.