0116 464 5544| Bank | Compare Rate |
|---|---|
| Barclays | Barclays remortgages |
| Halifax | Halifax remortgages |
| HSBC | HSBC remortgages |
| Lloyds Bank | Lloyds Bank remortgages |
| Masthaven Bank | Masthaven Bank remortgages |
| Nationwide | Nationwide remortgages |
| NatWest | NatWest remortgages |
| RBS | RBS remortgages |
| Santander | Santander remortgages |
| Tesco | Tesco remortgages |
| Woolwich | Woolwich remortgages |
| Yorkshire Bank | Yorkshire Bank remortgages |
Compare Remortgage Costs
Remortgages are used for a variety of purposes
Remortgaging is usually the process of switching from one mortgage provider to another however it is also possible to remortgage with the same lender. A remortgage involves the raising of funds from the equity held in your property, similar to that of a secured loan. Remortgaging often occurs when house prices increase quickly for a relatively short period of time, leaving the borrower with a low LTV and lots of equity that can be used for many reasons. It is also a very popular financing method because it is often the cheapest way of raising funds.
Better deals than your current lender
Reasons to remortgage:
- Obtain a better interest rate
- Debt consolidation. Clients may have high interest rate secured or unsecured loans, credit cards etc that they want to repay via a much lower rate remortgage. Caution however should be taken as this could mean transferring unsecured debt onto your home that if you subsequently fail to repay could ultimately mean your house being repossessed.
- Home Improvements
- School Fees
- Holidays/Cars
- Divorce settlement
- To buy a second property i.e.
Current property value: £100,000
Current mortgage amount: £30,000
Remortgage amount: £70,000
In the above example the borrower raises £70,000 (subject to criteria), £30,000 of which will repay the current mortgage and £40,000 can be used as a deposit to purchase another property, probably for investment or BTL. Lenders generally have differing reasons for why they will allow a remortgage, for instance some lenders will allow borrowing for debt consolidation whilst others don’t. Others will allow say a maximum remortgage of up to 75% LTV whereas others will go to a maximum of 60%.
Remortgaging and mortgaging basically uses the same products and has the same criteria. The length of the mortgage or the term is determined in the same way whether it is a mortgage or remortgage. The maximum LTV however is normally lower with a remortgage and the maximum loan size currently available is 85% of the value of the property albeit the majority of choice is available at 70/75%.
Bad Credit Remortgage
Contrary to popular belief, it is perfectly possible to access a competitive refinancing deal with bad credit. Even if you would most likely be turned down for a conventional mortgage, you may still qualify for a low-cost refinancing deal from a specialist lender.
While the vast majority of major banks are unwilling to consider applications from ‘subprime’ customers, independent lenders demonstrate significantly greater flexibility. Assuming you can comfortably afford the repayments and are currently in a strong financial position, your application will be considered on its wider merit.
Poor credit does not necessarily mean you cannot afford to remortgage, just as a flawless credit history does not always indicate a comfortable financial position.
Refinance with bad credit
It is worth remembering that good refinancing has the potential to significantly reduce monthly outgoings and save you money on the overall balance of the existing home loan. Remortgaging is not always about taking on additional debt: It has the potential to reduce the debts of homeowners locked into uncompetitive deals.
If you have any questions or concerns regarding your credit history, organise an obligation-free consultation with an independent broker to discuss the available options. Your flawed credit history need not stand in your way of accessing a competitive deal, though you are unlikely to find the support you need on the high street.
Should you remortgage?
Establishing whether remortgaging is a good idea means considering your requirements, your objectives and your budget. In some instances, refinancing with a new lender at a lower rate of interest can significantly reduce both monthly outgoings and the overall balance of an existing mortgage. In which case, remortgaging is definitely a good idea. If you are looking to raise funds for a major investment or home improvement project, it is a case of assessing affordability and considering your budget. If you can comfortably afford the repayments with no negative implications for your lifestyle, there is no reason not to go ahead. By contrast, refinancing is inadvisable where the borrower has any doubt whatsoever regarding their ability to comfortably meet their subsequent repayment obligations. If you are already struggling to pay your bills and stay on top of your finances, you should not be considering refinancing for the time being at least.
How to find the best remortgage rates & deals?
The key to finding the best remortgage rates and deals on the market lies in comparing as many refinance offers as possible from an extensive panel of lenders. Rather than limiting yourself to the usual High Street names, it is essential to include independent remortgage specialists in your search. As many ‘not on the High Street’ lenders operate exclusively via brokers, you will benefit from independent support throughout the process. Our exclusive remortgage calculator goes beyond the usual High Street names to include dozens of dynamic re-finance specialists across the UK. Even with a typical mortgage comparison site, you may not gain access to the most competitive deals on the market – use our remortgage calculator today to see how much you could save.
How accurate are remortgage calculators?
Even the most sophisticated remortgage calculators on the web are designed to provide a basic indication of the options available. As there are dozens of important factors to take into account when calculating and issuing home loans, the information provided by an online remortgage calculator cannot be guaranteed 100% accurate. Instead, calculators like these should be used to gain an overall idea of the affordability of a typical refinance. After which, an obligation-free consultation should be organised with a broker to discuss your requirements and the available options in more detail.
What is ‘Remortgage Affordability’?
Remortgage affordability is largely identical to standard mortgage affordability. Measuring ‘affordability’ of any home loan means establishing whether or not you can comfortably afford the subsequent monthly repayments, while maintaining your current lifestyle and covering your most important costs. In some instances, refinancing a property means increasing subsequent monthly repayments to cover the additional debt. In others, it is simply a case of extending the life of the mortgage without affecting monthly repayments. It is also possible to switch to a more competitive deal by refinancing, which provides the opportunity to reduce monthly outgoings and free up additional cash. Your mortgage broker will help you assess your current financial position and the affordability of any refinance deal you may be considering. An independent broker can also negotiate with lenders on your behalf, helping you access an unbeatable deal with the lowest possible overall borrowing costs.
Remortgaging to release equity?
The key to finding the best remortgage rates and deals on the market lies in comparing as many refinance offers as possible from an extensive panel of lenders. Rather than limiting yourself to the usual High Street names, it is essential to include independent remortgage specialists in your search. As many ‘not on the High Street’ lenders operate exclusively via brokers, you will benefit from independent support throughout the process. Our exclusive remortgage calculator goes beyond the usual High Street names to include dozens of dynamic re-finance specialists across the UK. Even with a typical mortgage comparison site, you may not gain access to the most competitive deals on the market – use our remortgage calculator today to see how much you could save.
Does a poor credit rating affect a remortgage?
This will depend on what has caused a poor credit score. You or a broker would need to check your credit report and if the poor credit is not due to missed payments or is from a while back, it is possible that the lender will ignore it or they may be able to offer you a slightly higher priced product.
Can I remortgage with bad credit?
This will depend on whether the poor or bad credit is due to mortgage arrears or any other adverse/bad credit. If it is due to mortgage arrears and they are in the last 3 months you will need a legitimate, easily explainable reason and there to be no other or minimal history of arrears in the past. If there are missed payments on the mortgage within 6-12 months there are lenders out there who will consider lending. If the bad credit is a result of missed payments on other type of credit again depending on when the arrears happened and how much the arrears amount to, they can be ignored. If one is looking to remortgage as they are at eviction stage, you might be able to access alternative finance options such as bridging loans.
How to remortgage with bad credit?
If it is due to mortgage arrears and they are in the last 3 months you will be unable to refinance unless there is a legitimate, easily explainable reason and there is no other history of arrears. If there are missed payments on the mortgage within 6-12 months there are lenders out there who will consider lending. If the bad credit is a result of missed payments on other type of credit again depending on when the arrears happened and how much the arrears amount to, they can be ignored. If one is looking to remortgage as they are at eviction stage, you might be able to access alternative finance options such as bridging loans. It best to contact a mortgage broker who has a range of lender on their panel and will be able to find you a lender based on your level of adverse.
Remortgage Rates
Like conventional mortgage rates, remortgage rates are continually fluctuating. Refinance rates can also be entirely different from one lender to the next, which is why it is important to compare the market in full.
With most lenders, refinance rates are no more or less competitive than those of conventional mortgages. In addition, the same factors apply which can have an influence on mortgage rates in both directions.
How the rate is calculated
Examples of which include the following, each impacting the competitiveness (or otherwise) of the interest rate you can expect to be quoted:
- The size of the remortgage loan
- How much equity you have in your home
- Your current financial position
- Employment status and income level
- Recent credit history
- Length of the repayment period
- Your intentions for the money
- The lender you work with
Across the board, keeping the mortgage interest rates (and overall borrowing costs) to absolute minimums can be simplified by working with a broker. Along with comparing the broadest spectrum of deals from specialist lenders across the UK, an experienced broker can also negotiate a preferential rate of interest on your behalf.
Rather than taking your business directly to any bank or lender, it is advisable to first consult with a broker to discuss the available options.
