Remortgage
If your fixed rate mortgage is about to switch to a standard variable rate (SRV) or you simply require a deal that is better suited to your current situation, re-mortgaging could be your best option.
There are several situations in which you may wish to re-mortgage, but some of the most common are as follows:
To borrow more money for home improvements, paying debts, etc. when your current lender has said no.
To overpay on the mortgage, bringing down the loan size to secure a cheaper rate.
To take advantage of a lower LTV ratio when the value of your property has dramatically increased.
To get a better rate, especially when your current deal is due to end.
Fixed interest rate products provide security by allowing borrowers to accurately budget for their monthly mortgage payments. But, after the fixed interest rate expires, your mortgage will revert to a variable interest rate. Variable interest rates can fluctuate at any time by any measure.
Being unaware of your interest rate reversion could result in significant unnecessary costs. Therefore, out of necessity, most borrowers remortgage to benefit from a new fixed interest rate product.
Rather than remortgaging when a product term expires, some homeowners favour applying for a further advance. A further advance is additional borrowing from the same lender. One advantage of a further advance is that you will save money on legal fees that you would pay when remortgaging. The further advance will have a different interest rate to your first charge product and will act like a separate mortgage. If you merely wish to acquire a better interest rate, and not withdraw capital from equity, a product transfer with the same lender may be suitable.
To ensure that you are always aware of when your fixed rate period will expire, we will automatically notify you via email two months prior to your interest rate reversion.