For everyone who owns a home, there will be a point in their life, during their introductory period, where that deal will come to an end.
If you are thinking in a similar vein to other homeowners, you might be considering taking out a remortgage on your property.
If you would like to learn more about remortgages in Leeds, please feel free to read the various remortgage guides we have on this topic.
Alternatively, you might benefit from listening to the “Moneyman” himself, Malcolm Davidson, talking all about remortgages in Leeds.
Is remortgaging right for me?
This will depend on what you are hoping to achieve with a remortgage in Leeds. For many homeowners, taking out a remortgage in Leeds is the next step that makes the most sense, on the road to improving their lifestyle or making the most out of their home. That being said, it isn’t for everyone.
The purpose of a dedicated remortgage advice team in Leeds is to review your circumstances, and what it is you want to achieve, and see if this is the most appropriate route for you overall.
We offer a completely transparent mortgage advice service, so if a remortgage in Leeds isn’t right for you, your mortgage advisor will let you know and offer a potential alternative.
Why do people remortgage in Leeds?
As is usually the case with any mortgage option, there will need to be a large amount of careful consideration before making any decisions. There are many reasons why a homeowner may look to remortgage their home once their introductory period has ended.
To Avoid Any Increases in Mortgage Payments
One of the biggest reasons in recent memory is because of a rise in interest rates. Based on their history, interest rates are a lot lower than they previously were, so you are much more likely to see an increase than a decrease.
With this in mind, it may be a lot better if you take out a remortgage in Leeds as soon as you can do so, fixing in for a specific duration, so that you can take advantage of what rates are like currently. People typically choose a 2-5-year fixed rate.
In some cases, you can choose a longer fixed term. A fixed rate could save you a lot of money throughout it’s duration, as the interest rate may have risen whilst you are fixed, though you will still be paying the lower rate of interest that was available when you took it out.
For a Better Rate
In other situations, it’s not because the interest rates are going up, but instead, because you want to access a better rate that could be eligible for. As time goes on, equity will grow within your property and your property may have potentially increased in its value.
The equity that is within your home can be used as a means of accessing a better loan-to-value. This can mean getting much better rates, which in turn can allow you to save money or reduce your term length if you would like to do this.
For Home Improvements
On the topic of the equity sat within the property, other customers may look to release equity through a remortgage as a way to raise the necessary funds to cover the cost of any home improvements, modifications or alterations they are planning to make.
Whilst some may just have the mindset of simply moving home for what they want in a home, for many, they have built a life in this home, potentially raising or having plans to raise a family in it. Because of this, they may need to alter it to fit their needs.
Reasons that frequently occur include a newly refurbished kitchen, creating an office for working from home, an additional bedroom, more living space, a conservatory or something else. This in turn can increase the value of your home, which is handy if you ever want to sell it.
To Consolidate Debt
Throughout your term, you may have gained a portion of unsecured debts against your name that have left the process of keeping up your payments a bit challenging. Though it can be risky, a popular choice amongst homeowners is to take out a debt consolidation remortgage in Leeds.
This type of process will move all of your unsecured debts into one combined monthly mortgage payment. Whilst this gives you more disposable income per month, with fewer outgoings, it will extend your debt over your mortgage term, which will cost more overall.
You should think carefully before securing other debts against your home. By adding your unsecured debts to your mortgage, which is secured on your home, you are potentially putting your home at risk if you cannot make the required repayments.
Although the total monthly cost of servicing your debt may have reduced, the total cost of repayment may still have risen as the term of your mortgage is longer than it may have taken to repay the debts originally.
Alternatives to a Remortgage in Leeds
For some homeowners, a remortgage in Leeds may not be the best choice. Because of this, it is always beneficial to take out expert remortgage advice in Leeds ahead of your fixed period ending, to find the best possible route for you to take.
Your dedicated mortgage advisor in Leeds may feel like you should take out a product transfer, where you would take out a new mortgage deal, but with the same lender. If you need more space, perhaps moving home would be more suitable after all.
In rare situations, it may actually be best for you to move across onto your mortgage lender’s Standard Variable Rate of Interest, though this occurs often as it will most likely be much more costly for you on your monthly mortgage payments.
If you are aged 55 and over, and own a property that is worth £70,000, it may be beneficial for you to discuss your equity release options with a qualified later-life mortgage advisor in Leeds. They will be able to discuss your lifetime mortgage options, explaining to you the pros and cons.
Get booked in for a free remortgage review today by utilising our online booking feature. A dedicated and trusted mortgage advisor in Leeds will take a look at your circumstances, providing you with expert clarity on which option will be most appropriate for you.
To understand the features and risks of an equity release in Leeds and lifetime mortgages, ask for a personalised illustration.
A lifetime mortgage may impact the value of your estate and it could affect your entitlement to current and future means-tested benefits. The loan plus accrued interest will be repayable upon death or moving into long-term care.
Date Last Edited: October 28, 2024
