By the time your mortgage ends, you will have ended up with one of these outcomes; a dream family home, a stepping stone property you’ll later leave to climb the property ladder, or a buy to let investment property.
No matter which path you took primarily, soon enough you’ll find that your fixed period is ending. At this point you might be wanting to look at the options you have for moving into a bigger or smaller home. Sometimes a landlord may look to sell up their portfolio.
As a mortgage broker in Grimsby, however, we tend to find that most people will look to take out a remortgage.
Before we get on with the topic, let’s look at the definition of a remortgage in Grimsby. To summarise, a remortgage is the process of using funds that you have raised from taking out a new mortgage, to pay off an existing mortgage in your name. .You can do this a lot of different ways and there are a lot of different benefits to each.
The “Moneyman” Malcolm Davidson (host of MoneymanTV, our YouTube Channel) has well over 20 years of experience in the mortgage world. Using his knowledge, we have compiled a helpful guide to all the remortgage options that a homeowner may have access to.
Your fixed period will usually last within the range of 2-5 years. The fixed rates or potential discounted rates here tend to be lower. Depending on the situation you are in, you may even find yourself placed onto a tracker mortgage, which will fluctuate based on the Bank of England’s base rate.
Once you reach the end of your fixed period, you will most likely be put onto the lenders Standard Variable Rate (typically shortened to SVR). In simple terms, an SVR is a mortgage with an interest rate that can completely change depending on what the lender wishes to charge.
Whilst this mortgage type does not change with the Bank of England’s base rate as a tracker mortgage would. These changes often occur at times when the base rate or the market changes. For example, if the base rate goes up, your lender may choose to increase their rate too.
Because of this, Standard Variable Rates are often considered to be pretty expensive choices to stick with, which is why a lot of homeowners often choose to remortgage their property for better rates. The hope is that this will save you money down the line.
A couple of years into occupying your property, you may have something different in mind. Rather than finding a new place to live that covers what you would like in a home, many homeowners instead prefer to remortgage to release equity, in order to cover the costs of upgrading their current home.
We hear of customers looking to achieve all kinds of things in their homes. Some like to create more space to live in. Others are unhappy with their kitchen and would like it refurbishing. An increasingly popular one is converting the loft into another room or something else.
The prospect of planning and managing your own project, as well as getting permission from the authorities when necessary, can seem daunting. That being said, a lot of customers who have done just that would argue it’s a lot less stressful than finding a new house, and is a lot more rewarding.
This may benefit you further down the line too, as creating more space and having a solid, well built home is something that will likely increase how much the house is worth. In the event you did decide to sell up and move home, this would come in handy.
Depending on the situation you are in, you may just prefer to take out a remortgage in Grimsby in order to access a better mortgage term. This can be achieved either by reducing how long your mortgage term is or by switching onto a product that is more flexible.
When you reduce your mortgage term, you won’t be paying back, nor will you be restricted for as long. That being said, it tends to mean higher monthly mortgage payments for you. The longer you make your mortgage term, the less you’re likely to have to pay per month.
A lot of the time, customers may choose a more flexible mortgage term at remortgage time. This may give you the option to overpay more than usual (this comes with a cap typically), meaning you could pay your mortgage off quicker. Also if you wish to move, you may be able to carry that mortgage onto a new property.
Though this could be the best route to take, they will typically come in the form of tracker mortgages. As we looked at before, this will correlate with the Bank of England’s base rate. This means your monthly payments could be a little unreliable, as they may change.
Unless the country were to experience another serious market crash, every homeowner will have a certain amount of equity existing within their home. This can be worked out with the difference between what you still owe on the mortgage, and the value of the property.
As mentioned previously, people usually look at taking out a remortgage to release equity as a way of assisting with the funding of home improvements, though you may have something else you wish to use this for.
Popular choices include to cover long-term care costs, provide an income boost, cover the costs of a large holiday, pay off an interest-only mortgage or to simply free up some extra disposable income.
From time to time, we also find that Buy-to-Let landlords will look to remortgage to release equity from one of the properties in their portfolio, as a way to cover the deposit for a future purchase.
For homeowners who are aged 55+ and have a property that is worth at least £70,000, it may be beneficial to take at your options for Equity Release in Grimsby. Speak to a trusted later life mortgage advisor to learn more about lifetime mortgages and equity release.
Following on from the latter section, some may remortgage to release equity, to pay off any built up, unsecured debts.
Though it sounds simple, how much you can borrow for a debt consolidation remortgage depends on how much you owe a creditor, the value of your home and the current state of your credit rating. This means you could be limited in how much you are allowed to borrow.
In addition to this, in order to pay your previous mortgage off entirely, as well as the debts you have accrued, you will have to borrow more than you actually require for a mortgage. This will most likely mean higher monthly payments.
It’s not at all an ideal situation, but you’ll at least have comfort in knowing that should you find yourself struggling, there are some options out there that you can take.
If you have a damaged credit rating, you’re not completely out of options. That being said, it will be a challenge and you will require specialist remortgage advice in Grimsby before you can go forward with it. Even then, you are not guaranteed to get a mortgage.
Homeowners should always seek out the advice of a specialist mortgage advisor in Grimsby before they consolidate any debts against their home.
If you are reaching the end of your initial fixed period and wondering what your options may be for a remortgage in Grimsby, please do get in touch.
Book your free remortgage review to speak with an open & honest mortgage advisor in Grimsby today. We work around your schedule, so you can speak to someone at a time that is convenient for you, whether it be early in the morning or later in the evening.
A trusted mortgage advisor in Grimsby will be able to go over your case and any plans you may have, in order to create a suitable plan of action for your mortgage journey. We always aim to make sure that this time around is as quick, if not quicker than your last process.
When you are coming to the end of your fixed mortgage term, it’s important that you look to take out a new product. This ideally should be happening around 6 months early.
The process of taking out a new product is either known as a product transfer or a remortgage. However, a product transfer happens when you take out a new mortgage product with your current lender and remortgage is when you take out a new mortgage product with a different lender.
It would be nice, however, the majority of lenders don’t reward you for your loyalty to them. It’s unjust, however, it’s more likely that they’re offering First Time Buyers in Grimsby a more favourable rate than existing borrowers like yourself.
Obtaining open and honest Mortgage Advice in Grimsby is something we strongly suggest before accepting a deal. Finding a competitive deal with the same lender can be a challenge so it’s best that you search through some deals or approach a Mortgage Broker in Grimsby.
Here at Grimsbymoneyman, our team can search through thousands of competitive mortgage deals to find the one that is fitting for your personal and financial circumstances. We always have your best interests at heart and will work hard to find your dream deal.
Even though changing over to a new deal with your current lender through an online switch may sound like a simple route, you may want to see what other deals you may be eligible for. It’s common for lenders to try and tempt you to take their online offer instead of getting Remortgage Advice in Grimsby.
Approaching a reputable Mortgage Broker in Grimsby, like ourselves, means that you are guaranteed consumer protection which is something you don’t get with an online switch.
Through our experience, we find that many customers decide to go for the most convenient option. This can result in them missing out on a good deal that they had access to if they took more time in the process or approached a Mortgage Broker in Grimsby.
It’s important to take advice, especially if it’s free! Here at Grimsbymoneyman, all our customers are offered a free mortgage consultation to every single customer. Our job is to shop around for you across our large panel of lenders to find you the most appropriate deal for your situation
In the event that an individual ends up on the wrong deal by accident or feels like they could’ve had a better one down the line, they may regret not seeking advice and just going down the route of an online switch. Furthermore, you may realise that seeking Mortgage Advice in Grimsby could save you money compared to switching deals in the future.
We have a plethora of experience in the mortgage industry and have an excellent reputation when it comes to finding customers the perfect deal for their situation. Our team strive in providing a fast and friendly service that aims to take off any stress in the remortgage process.
Regardless of whether your situation is simple and straightforward, we always recommend you seek Mortgage Advice in Grimsby. Look at it this way, a second opinion costs nothing but making a mistake when taking out a new product can be costly.
By simply searching the market for a new deal could save a lot of money. As a Mortgage Broker in Grimsby, this is where we can help. We offer all our customers a free remortgage review with one of our expert advisors who can provide you with top-quality, tailored service to achieve your remortgage goals. Simply get in touch or book online today.
The majority of people will perhaps not even consider taking out a second mortgage. As it is, one mortgage can stress people, nevermind having a second one! Furthermore, it can also be even more costly to do so as well.
That being said, surprisingly, they are still pretty common with homeowners. Here are a selection of reasons as to why someone may wish to invest in an additional mortgage.
Quite often, people who have built up a portion of equity within their home may find that they would like to make some additional changes to their home. This isn’t a second mortgage in a sense of having two run alongside each other, but more of your second go around.
In order to release equity, you will need to remortgage from your current deal, onto a new one. We most frequently see people using the equity within their home to cover the costs of things like home improvements, modifications or alterations.
Additionally, whilst releasing equity can be an option, you may also be able to use your equity in other ways. Some may release it to fund the deposit of an additional purchase, whilst others may use the equity in their home to open themselves up to better deals.
The process of renting out your existing property in order to raise the funds to purchase a new home, is called a let to buy mortgage in Grimsby. This requires remortgaging your existing home onto a special let to buy mortgage, whilst you take out a new residential one.
We are starting to see more and more first time buyers taking out first time buyer mortgages in Grimsby and getting onto the property ladder, though there are still plenty out there who are finding it difficult. It’s not an easy transition to go from renting to buying!
One of the bigger factors we have seen in younger people doing this, is by having the help of a family member. Gifted deposits is the act of gifting money, either from savings or from the aforementioned remortgage to release equity, to a family member, to help them achieve their home buying goals.
In addition to this, there may also be the option of simply purchasing a new home for your family member to live in. For this to work, the mortgage would be taken out in your name, making it a literal second mortgage, though you would not be living there.
A mortgage lender may prefer you to live in a residential property you are going to be paying for, though there are mortgage lenders who will allow this. In order to have two mortgages running side by side, you will need to meet a mortgage lenders strict lending criteria and affordability requirements.
If you are already a landlord with a buy to let mortgage in Grimsby, you may be looking at expanding your investments into even more properties. The good news is that this is very common, with many landlords owning more than one property.
We have helped thousands of buy to let landlords over the years, securing them amazing buy to let mortgage deals and forming relationships, that see many of them returning for remortgages and additional purchases.
Book online and we’ll get the ball rolling on any further buy to let mortgages in Grimsby you are looking at taking out.
If you are currently named on another mortgage but do not want to be financially tied to another person anymore, you may be considering your options. This scenario is common with divorce and separation. In this case, you need to remove the financial ties as soon as possible.
You can achieve this by either yourself (if you’re planning to stay in the property) or your ex-partner (if they are staying within the property) remortgaging into your sole name. This has to be done with the consent of the other party.
If the mortgage lender determines that one party cannot afford the current mortgage in their sole name, you may not be able to get your name removed from their mortgage. As such, you will still be legally responsible for it, even if you agree that only one of you will maintain payments.
From here, you may want to purchase a home of your own, in your name. Though it can be tricky with affordability, there are specialist mortgage lenders who are willing to help customers who are looking to have a second mortgage in their name due to this circumstance.
Book your free mortgage appointment today and benefit from expert specialist mortgage advice for specialist mortgages in Grimsby, today.
The outbreak of the Coronavirus has left most people having to work from home. Surprisingly, lots of people are warming to this change of scenery and are hoping to continue working from home after lockdown.
Technology has made it so that you can access everything you can from in an office from home. Communication between you and your coworkers is just as easy, you make a call by the click of one button.
If you are interested in remortgaging for a home office, you will have to remortgage your property to raise additional funds. These funds will be used to convert your chosen room into an office space. People usually prefer to convert their spare room or their garage.
To get the ball rolling, you are going to need to find a remortgage deal to switch onto. This is so much easier with a mortgage broker by your side as they will search through thousands of mortgage deals on your behalf and sort out everything for you. A Mortgage Advisor in Grimsby at Grimsbymoneyman will always have your bests interest at heart and will work around your personal circumstances to help you secure a perfect remortgage deal.
If you approach your bank, you will only have access to their deals and their deals only, however, a Mortgage Broker in Grimsby like us have access to over 38 different lenders and thousands of different remortgage deals.
You will have to get an estimate of how much you think the works for our home office is going to cost. Depending on the size of the room and how much work needs doing on it, the price could range from £5,000-£15,000.
Now is a perfect time to remortgage as the interest rates have never been so low. Assuming you manage to secure a deal with a 2% interest rate for a 25-year mortgage term, if you borrow £5,000 you will probably only be paying back £20 extra a month. If you borrow something like £15,000, you shouldn’t be paying back more than £65 extra a month.
On top of saving more money by looking for a remortgage deal now, you are also saving money in the long term. You won’t be driving to and from work every day, whether it’s far away or close by, you are still saving money and also doing your bit to reduce your carbon footprint.
Parents may usually rely on an after school club or a childminder to look after their children, however, a home office will allow you to work around the school routine which could save you even more money.
We always recommend speaking to a Remortgage Advisor in Grimsby before making any decisions. We do offer a free mortgage consultation, so if you are curious about the costs and how you can go about remortgaging, get in touch and speak with a Mortgage Advisor in Grimsby today.
Some people have already found their ‘dream home’ and have no plans to move house in the future, so they decide to remortgage for a home extension. The most popular home improvements that we see are kitchen extensions, conservatory extensions and loft conversions.
People are realising that home improvements cost a lot less than what they originally thought, they are easy to get too!
To get started, you will have to remortgage to raise additional funds. To remortgage, you need to find a remortgage deal to switch over to. You can either go directly to your lender and choose a remortgage deal from their limited products or go to a Mortgage Broker in Grimsby, like us, who has access to over 38 different lenders and thousands of remortgage deals.
A Mortgage Advisor in Grimsby at Grimsbymoneyman will be by your side through the whole of the remortgage process, recommending what you do at every stage, as well as working day in, day out to find you a perfect remortgage deal to save you both time and money.
In the current climate of the UK and because of the effect of the Coronavirus has had on the mortgage market, the interest rates have dropped to some of the lowest we have seen in over 20 years. So getting a great remortgage deal should be fairly straight forward and because of the interest rates, your monthly payments won’t really be affected.
For example, for an additional £100 – £200 a month, you could borrow £25,000 – £50,000. There are lots of different factors that will affect how much you will have to pay back per month and the total that you can borrow. You will have to consider that the size of the room and the more work that needs doing on it will raise the amount that you can borrow and your monthly payments.
You will also need to note that in order to remortgage, you will have to go through another affordability assessment, even if you switch deals through the same lender.
Now is the best time to remortgage! The interest rates have never been lower, and they will slowly return back to normal. Also, lenders are probably going to extend the time frame of your remortgage application anyway, so the works won’t get started for another 6-9 months anyway.
As a Remortgage Advisor in Grimsby, we always advise borrowers to get Remortgage Advice before going directly to a lender. A Mortgage Advisor at Grimsbymoneyman will always have your best interests at heart and work around your personal situation to match you with an amazing remortgage deal. What’s better than having a friendly Mortgage Advisor by your side to provide you with their amazing help and guidance throughout every stage of the remortgage process.
We offer a free mortgage consultation here at Grimsbymoneyman, so get in touch and we can pass you straight over to a Mortgage Advisor who will talk you through all of your remortgage options in Grimsby.
If your current mortgage deal is coming to its end then it may be time to think about remortgaging.
People who don’t realise that their mortgage deal is coming to an end can sometimes end up rolling straight onto their lender’s standard variable rate if they are not careful. 9 times out of 10, this rate will be significantly higher than your current rate. This is why we recommend that you always keep up to date with your mortgage and make sure you know when to start looking to remortgage.
A great way to get up to date would be to speak with a Remortgage Advisor in Grimsby, like us, we will evaluate your financial and personal situation and then search through 1000’s of remortgage deals until we find the perfect one for you! Remember, you can still take out another loan to help you afford your new remortgage deal and it’s payments, it can be added on top of your monthly payments.
Lenders want you to stay with them, they don’t like their borrowers shopping about for better deals even though it would benefit you more if you did! Shopping around rather than staying with your current lender could open you up to deals that are way better than your current one. Lenders will not reward you for being loyal, they will probably be offering better rates to their new customers over you. This is why you should have a look around as there are tonnes of remortgage deals out there for you.
You will find that some people don’t want the hassle of looking through hundreds of remortgage deals so they just do it on their own online and switch over there and then. This is an execution-only mortgage, the downside is that you get no consumer protection, whereas you would’ve had you had taken Remortgage Advice in Grimsby. We also see that people who do everything online can easily trip up ending up on a much higher rate than what they could’ve got, lenders love this, as harsh as it sounds.
There are lots of different types of mortgages out there and some of them are more popular than others. We have also made some “Mortgages Explained” YouTube videos on moneymanTV, be sure to check them out if you are interested.
If you feel like your home would benefit from some upgrades, remortgaging for home improvements could be the best option for you. You may want to increase the value of your home or you may just simply want a makeover with a loft conversion, an extension. You can increase your mortgage to pay for cosmetic alterations as well as structural work
If you are planning on borrowing quite a lot of money, your lender has every right to ask you for estimates for the works you intend to have carried out. You don’t necessarily have to use the contractor that provided the estimate to do the actual works.
You can raise capital on your property when you remortgage for almost any legal reason. This could be for large consumer purchases, gifts to help family members, to purchase a Buy to Let property or for debt consolidation.
You will still be paying interest on a remortgage for a long time after you take one out. This means that you have to be sure that you are borrowing for all of the right reasons and that you will be able to keep up with these monthly payments throughout the whole of your mortgage term.
Adding unsecured debt to your mortgage could potentially result in you having to pay back more interest overall. This is because the length of a mortgage term is usually a lot longer than the length of a personal loan (this is not always the case though).
Taking unsecured debt on your home will not sit easily with everyone, for example, lenders may look at it that you are under the risk of possession if you can’t afford your mortgage payments in the future.
You will need to know that if you own 0% credit cards, the interest rates that apply to the debts that you are thinking of transferring onto your mortgage will start gaining interest too.
If you don’t know what you doing, remortgaging can become complicated very quickly. There are lots of different routes to go down and it’s hard to see which one will benefit you the most. This is why going through all of your options with a Mortgage Advisor in Grimsby could benefit you most. Here at Grimsbymoneyman, an advisor will recommend you the best way to go about remortgaging regarding your personal and financial situation. They might even recommend that you don’t take a debt consolidation remortgage, they will always work with your best interests at heart.
Often, consolidating debts into your mortgage can decrease your monthly outgoings. Sometimes borrowers can end up saving hundreds of pounds because of this.
Find out if remortgaging your property is the best option for you and speak to a Remortgage Advisor in Grimsby today, we can’t wait to help!
Whether you’re a first time buyer in Grimsby looking to step onto the property ladder or someone who’s moving, you’ll soon discover that there’s a diverse array of mortgage types available. Some are widely known and readily accessible, while others are more niche. To help you better understand the variety of mortgages at your disposal, we’ve compiled a list of the most common options offered by lenders. We’ve also created informative videos for each mortgage type to make them more comprehensible, as some can initially appear quite complex.
A fixed-rate mortgage is quite straightforward. With this type of mortgage, your monthly payments remain constant for a predetermined period that you agree upon with your lender. Typically, people opt for fixed-rate mortgages with durations of 2-5 years, but you can choose longer terms, such as 10 or even 15 years.
It’s essential to consider that long-term fixed-rate mortgages lock you into the same payments for an extended period, and significant changes can occur over 10 or 15 years. The economy and interest rates are unpredictable over such extended periods. To potentially save money in the long run, opting for a 2-year fixed-term mortgage and renewing it with a different rate every 2 years could be a more flexible and advantageous approach.
A tracker mortgage is where the interest rate closely mirrors the Bank of England’s base rate. Unlike fixed-rate mortgages, the lender doesn’t set the interest rate but ties it directly to the Bank of England’s rate. Your interest rate is usually expressed as a percentage above the Bank of England base rate. For instance, if the base rate is 1% and your tracker mortgage is set at 1% above the base rate, your effective interest rate would be 2%.
During periods of high Bank of England interest rates, lenders may be less inclined to offer tracker mortgages since they can result in higher interest payments for borrowers. Fixed-rate mortgages tend to be more popular in such circumstances because they provide stability and protection from rising interest rates. If you choose a tracker mortgage when the Bank of England rates are high, it may lead to higher mortgage payments over time, which might not be suitable for borrowers seeking predictability and affordability.
When you have a repayment mortgage, you’re making monthly payments that cover both the loan’s interest and principal. If you consistently make these payments throughout the mortgage term, you’ll ensure that the loan balance is fully paid off, and the property becomes entirely yours.
Repayment mortgages are the most secure way to repay the borrowed capital. In the early years, the majority of your payments go toward interest, causing the balance to decrease slowly, especially if you’ve chosen a longer-term mortgage, such as 25, 30, or 35 years. However, this pattern changes in the last decade of your mortgage, where your payments start to pay off more of the principal than interest, resulting in a quicker reduction of the remaining balance.
While many buy to let mortgages in Grimsby are commonly structured as interest-only, obtaining an interest-only residential property mortgage has become considerably more challenging. Lenders are now less inclined to offer interest-only products. However, there are specific situations in which this option may still be available.
Such situations include downsizing in later years or having alternative investments earmarked to repay the principal. Lenders have become much stricter in their criteria for offering these products, and the loan-to-value ratios are significantly lower than in the past.
An offset mortgage involves the setup of a linked savings account alongside your mortgage account by the lender. The concept is simple: if you have a mortgage balance of £100,000 and maintain £20,000 in your linked savings account, you only pay interest on the reduced amount, which is £80,000 in this scenario. This approach can be highly effective for managing your finances, particularly if you fall into a higher tax bracket.
Whether you are a first time buyer in Grimsby searching for a perfect home or current home-owner wanting to move house, we can help! You may be looking to remortgage, interested in buy to let mortgages, need help to buy advice or general mortgage advice in Grimsby. Guiding you through these situations is what we do best and it is our service to you as our consumers.
Whether you are a First Time Buyer in Grimsby actively viewing properties or a home mover with your house on the market, you may have noticed that some of the larger estate agents and builders are very keen for you to use their in-house mortgage advisor and conveyancing services.
Being part of a stand-alone mortgage business we receive lots of feedback as to what sales tactics can be used, examples of this are:
“Keeping everything under one roof is easier with one point of contact”
“If you use our services it will give the vendor peace of mind that everything will go through smoothly”
“You need to come in and see our mortgage advisor for your offer to be qualified”
“Your offer is more likely to be accepted if you use our mortgage advisor”
“We get better deals than most brokers”
“Everything is likely to go through quicker if you use us”
“We will do all of the chasing of the solicitors for you and they’ll be more responsive to us due to the amount of work we send them”
“We’ll give you a free carpet/washing machine if you use our (extortionately priced) recommended conveyancing service”
Remember, when negotiating a purchase price, do you really want the seller of your property having access to your personal financial situation and potentially knowing your maximum borrowing?