You never know what to expect from the mortgage process. Sometimes it can be unpredictable and stressful, however, in other situations, it can be simple and easy-going. Taking out a mortgage is a huge financial commitment, for example, you’ll need to keep on top of your payments and know when your fixed-term is ending.
Fixed mortgage term lengths will vary depending on the product that you take out. Usually, mortgages will come in 2-year, 3-year or 5-year fixed terms. In some cases, depending on the individual’s circumstances, it may be better to take out a product with an even longer fixed term, such as 7 or 10 years. When you come to the end of your fixed term, you will need to take out a new deal, as your current one has ended, this is when it’s time to remortgage.
In some cases, you may be able to remortgage early, although, in doing so, you may have to pay a large fee (early repayment charge) for switching early.
A Remortgage is taking out another mortgage product to replace your current one. This can also be known as a product transfer, however, the main difference is that a remortgage involves taking out a different lender’s product and a product transfer is where you take out a new product with the same lender.
It sounds simple when you put it like that. On the other hand, when it comes to remortgaging/transferring products, there are lots of different deals and rates available, meaning that you may need to do a lot of looking around so that you can find the right deal for you.
People may also want to remortgage for different reasons; you can remortgage to find a better rate, improve your home, consolidate debts and many more reasons.
Typically, an average fixed mortgage term lasts between 2 and 5 years. During this time, you will be paying off some capital as well as interest, therefore, when it comes to your remortgage 2-5 years later, you could find yourself in a lower loan-to-value bracket which could allow you to access better rates.
This is why people choose to remortgage, because if they don’t, they may risk falling onto their lender’s standard variable rate of interest (SVR), which could be much higher than your current one.
If they remortgage before this happens and manage to find a better rate due to fitting into a better loan-to-value bracket, they may end up saving money each month.
If you’re on a tracker mortgage, you will find that your monthly payments and your interest rate are dependant on the Bank of England’s base rate. Their base rate will change with the economy’s performance, for example, if the economy is bad, base rates may lower, and vice versa.
Lenders will also add an extra percentage onto this base rate so that you’re usually tracking a rate between 2-4%. Tracker mortgages will work similarly to your lender’s SVR mortgages.
If you feel like your current home could do with some improvements, such as a new extension or conversion, through the power of remortgaging, there’s a possibility that you could get this work done.
Firstly, you’ll have to get an estimation of the costs of the improvements. Once you get an idea of how much it’s going to cost, you could be able to incorporate these costs into your mortgage upon taking out a new product. Although your overall monthly payments may slightly increase, out of it, you’ll get a brand new kitchen extension, loft conversion, etc.
Rather than going through the process of moving home in Doncaster and having to sell and buy a property at the same time, it can prove easier to improve your current home.
If you are a growing family, want to add value to your home or just want to give your home a fresh look, we would recommend looking into remortgaging for home improvements.
In some cases, an applicant may want to extend or shorten their whole term to try and switch to a more flexible product.
If you shorten your term, it will mean that you pay off your mortgage a lot quicker. However, a shorter term can also mean higher repayments. Extending your term can reduce your payments but also mean that you’ll be paying off your mortgage for longer.
At the point of remortgage, this is where you can decide whether you want to extend your term or not. If you choose to shorten your term, you may also be given the option to overpay, which can help you pay off your mortgage quicker.
Even though a flexible mortgage product sounds like a great idea, they usually come in the form of a tracker mortgage. A tracker mortgage tracks the Bank of England’s base rate of interest, and this interest rate can change depending on how the economy is performing. This means that your payments each month could change, as when the interest rates change, it can affect your payments.
The longer that you’ve owned a property, the more equity you’re likely to have in it. Equity is the difference between what is still owed on the mortgage and the current value of the property. In some cases, you’ll be able to remortgage and release some of this equity to turn it into a lump sum of cash.
You can spend this cash however you want to. You could put down another deposit on another home, buy a new car or even pay for a wedding with it – it’s your money!
As a Mortgage Broker in Doncaster, we often see that Buy to Let landlords release equity in order to put down a deposit onto another property to expand their portfolio.
If you are over the age of 55 and your property is worth at least £70,000, it may be worth looking at your options for Equity Release in Doncaster. Speak to a trusted later life mortgage advisor to learn more about Equity Release & Lifetime Mortgages.
If you’ve built up some unsecured debt and want to incorporate it into your mortgage, in some cases, this can be made possible. It is recommended that you speak with an expert Mortgage Advisor in Doncaster, as debt consolidation is a complex and tricky subject.
It can get complicated as debt consolidation is not only based on how much you owe and your property value, your credit rating also matters.
You also have to consider that you’re trying to incorporate large sums into your mortgage, therefore, your total mortgage amount will increase. This will also increase your monthly mortgage payments.
If you have bad credit, and you need help from a mortgage expert, don’t hesitate to contact us. We have debt consolidation experts at Doncastermoneyman that will be happy to help you with your needs.
If you are coming towards the end of your fixed mortgage term, it may be time to start your remortgage journey. We would advise that if you are within 6 months of your deal ending, it may be time to start looking around for deals. If you aren’t quite ready for that stage yet, we can take that stress away and do it for you!
Book your own free remortgage appointment online today. We have advisors who are experts in giving remortgage Advice in Doncaster, and they are available 7 days a week. It’s our job to help you through your process and try and find you a perfect deal that matches your personal and financial situation.
The process of buying a home can be overwhelming and stressful, especially for first time buyers in Doncaster and home movers in Doncaster. That’s where a trusted mortgage broker in Doncaster comes in, offering valuable assistance to make the process smoother and faster.
At Doncastermoneyman, we understand the importance of having someone on your side to handle the complex parts and answer all your questions.
Our dedicated mortgage advisors in Doncaster work tirelessly to ensure you get the best mortgage outcome that suits your personal needs, whether it’s your first purchase, a second one, or a remortgage.
We highly recommend seeking mortgage advice in Doncaster as early as possible in your home buying journey. Our committed team can help you determine how much you can afford to pay per month and how much you may be able to borrow.
With access to various lenders and their criteria, we can provide valuable insights to avoid any future disappointments.
Keeping our customers informed throughout the mortgage application process is a top priority. We make sure you know the progress of your application and what to expect next. Our lines are always open, ready to help you with any queries or concerns.
As your mortgage broker in Doncaster, we work for you, not the lender. Our goal is to understand your financial situation thoroughly to present the strongest possible application on your behalf.
By conducting thorough checks on your proof of income and bank statements early on, we can identify and address potential hurdles proactively.
Beyond mortgage advice in Doncaster, we provide comprehensive support throughout your property transaction. We can help you choose the right type of survey and instruct a solicitor on your behalf for the legal aspects.
Our team diligently completes application forms to ensure accuracy and increase the chances of approval.
Our mortgage advisors in Doncaster take pride in building lasting relationships with our customers. We are here to help you with future mortgage enquiries, whether it’s for buy to let in Doncaster or a remortgage in Doncaster when your term ends.
From the initial affordability assessment to the agreement in principle, and even after your purchase is complete, we maintain regular contact to discuss your remortgage options.
In conclusion, working with a trusted mortgage broker in Doncaster can make a significant difference in your home buying journey.
From early mortgage advice in Doncaster and throughout your homeownership, we provide personalised support to ensure the best possible outcomes for you and your family. Get in touch with us today to start your home buying journey on the right foot.
When it comes to securing your family’s future and protecting your most significant investment – your home – mortgage protection insurance emerges as an indispensable tool. Life is full of uncertainties, and having the right insurance coverage can provide peace of mind in the face of unexpected events. In this comprehensive guide, we’ll delve into the nuances of Mortgage Protection Insurance and the various options available in Doncaster.
Mortgage Protection Insurance is a safety net that shields your loved ones and your home in the event of unforeseen circumstances such as death, critical illness, or loss of income. It ensures that your mortgage repayments continue to be met, allowing your family to remain in the home you’ve worked so hard to build. This insurance provides a financial cushion during challenging times, reducing the stress and worry that can come with unexpected events.
Life Insurance is a fundamental component of Mortgage Protection Insurance. In the unfortunate event of your passing, looking into life insurance advice in Doncaster ensures that your family’s financial stability remains intact. The insurance payout can be used to pay off the remaining mortgage balance, preventing your loved ones from shouldering the burden of mortgage payments during an emotionally challenging time. This kind of insurance not only secures your family’s shelter but also provides the necessary support to move forward without added financial strain.
Critical Illness cover in Doncaster is another crucial aspect of Mortgage Protection Insurance. In the face of a severe illness, this insurance provides a lump sum payout that can be used to cover medical expenses, lifestyle adjustments, and even mortgage payments. Critical illnesses can strike without warning, affecting your ability to work and earn an income. Having this coverage ensures that you can focus on recovery without worrying about the financial repercussions of your illness.
Income Protection in Doncaster is designed to safeguard your financial stability in the event that you are unable to work due to illness or injury. It offers a regular income, typically a percentage of your salary, which can be used to cover mortgage payments, daily living expenses, and other financial commitments. Income Protection ensures that you can maintain your standard of living even during periods of reduced or no income, allowing you to concentrate on your recovery without the added stress of financial worries.
Family Income Benefit is a unique form of insurance that provides a regular income to your family in the event of your death during the policy term. Instead of a lump sum payout, this insurance offers a steady stream of income, which can be used to cover mortgage payments and other essential costs. This approach ensures that your family’s financial needs are met over an extended period, giving them the stability they need to move forward.
Navigating the world of Mortgage Protection Insurance can be overwhelming, with various options to consider and policies to evaluate. Consulting a qualified mortgage broker in Doncaster can help you make informed decisions tailored to your specific circumstances. A knowledgeable broker can assess your needs, recommend suitable insurance products, and guide you through the application process, ensuring that you choose the coverage that aligns with your goals.
Mortgage Protection Insurance offers a safety net for your family and your home, providing financial security during times of uncertainty. Life Insurance, Critical Illness Insurance, Income Protection, and Family Income Benefit are all vital components of a comprehensive insurance plan. By seeking professional advice from a reputable mortgage broker in Doncaster, you can make confident decisions that safeguard your family’s future and provide the peace of mind you deserve. Don’t wait until it’s too late – take the necessary steps to protect what matters most today.