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ADVICE<br />
35<br />
Remortgages and product transfers<br />
Why and when is a good time to consider swapping mortgage providers or<br />
asking your existing mortgage lender for a new deal....<br />
Your existing mortgage deal is due to expire<br />
Most mortgage deals only last for between 2 and 5 years on a fixed rate, tracker<br />
or discount mortgage<br />
When it comes to an end, your lender will put you on its standard variable rate<br />
(SVR). It’s usually higher than your old interest rate and higher than most best buys<br />
available. If so, you need to consider a remortgage. I always recommend starting the<br />
process 3 months before your existing deal ends.<br />
At time of publication the SVR for Halifax is 3.74%, Nationwide 3.74%, Natwest<br />
3.75% and Santander 4.49%.<br />
You would like a cheaper rate<br />
If you are tied into an initial deal then you will usually have to pay an early<br />
repayment charge/penalty which can be as much as 2-5% of your outstanding<br />
mortgage balance. The monthly savings would need to be huge for anyone to<br />
consider doing this. Its important that you do your sums first.<br />
If your existing deal has ended there are no early repayment charges payable then<br />
this is defintiley the time to consider moving your mortgage or asking your existing<br />
lender for a new deal.<br />
The value of your home has increased<br />
The value of your house may have gone up significantly since you took out<br />
your mortgage. As a result you may find that the increased equity that you now<br />
have allows you to get a better deal as you have more security to offer the mortgage<br />
lender, and therefore eligible for much lower rates. Again, you need to do your sums<br />
but it’s definitely worth considering.<br />
You want to borrow more<br />
You may want to borrow more money for home<br />
improvements for example and your existing lender says no.<br />
They may say yes but the terms they offer are not favourable.<br />
The new lender will always ask you what the extra money<br />
is for. A mortgage company is happy to lend for most legal<br />
purposes except paying a tax bill or ploughing money into a<br />
business.<br />
You may have to provide evidence of what the extra funds<br />
are to be used for so be prepared for this.<br />
Martin Newell,<br />
Blestium Financial<br />
How can Blestium Financial Services help you?<br />
We will conduct a free mortgage review for you.<br />
We will show you where savings can be made or where the chepest place to raise<br />
extra money may be.<br />
We will also help you change mortgage products with your existing mortgage<br />
company if this is your preference.<br />
If you have large penalties or fees to pay we will make a note of when these no<br />
longer apply and contact you in plenty of time to take advantage of any great deals<br />
available without the fear of you having to fork out out huge costs<br />
Blestium Financial Services do not charge any fees for any of the above services.<br />
Please call us on 01600 775393 or 07525616987 to book an appointment at our<br />
office or your home. Evening and weekend appointments available.<br />
mortgages, life insurance and finance specialists<br />
You’re worried about interest rates going up<br />
You may be concerned that rates will increase soon so protecting yourself against<br />
this becomes a priority. There are some great long term fixed deals from 5 to 10<br />
years available.<br />
You want to overpay & your lender won’t let you<br />
Perhaps you’ve had a pay rise or maybe you’ve inherited some money. You now<br />
want to pay extra but your current deal won’t let you or it will only let you make a<br />
small overpayment.<br />
A remortgage will allow you to reduce the loan size and potentially get a cheaper<br />
rate as a result. But watch out for any early repayment charges or exit fees you face,<br />
and compare this to how much you’d save with the new, lower mortgage.<br />
You want to switch from interest-only to<br />
repayment mortgage<br />
Many people took out interest only mortgages in the past. This is almost unheard<br />
of these days for a residential mortgage as rules have changed. The only way to<br />
guarantee that a mortgage is paid off in full at the end of the mortgage term is to<br />
have a repayment mortgage.<br />
4 Re Mortgage<br />
4 Overseas Mortgages<br />
4 Buy To Let Mortgage<br />
4 Let To Buy<br />
4 Help To Buy<br />
Top Floor, The Market Tavern, 26 Agincourt Square, Monmouth NP25 3BT<br />
E: blestium@hotmail.com<br />
Tel: 01600 775393<br />
4 Equity Release<br />
4 Protection<br />
4 Asset Finance<br />
4 No broker fees<br />
Professional Impartial Confidential<br />
www.blestium.com
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