Switching mortgages, or remortgaging, involves moving from one mortgage to another. You may choose to remortgage for various reasons, usually to reduce the overall monthly mortgage payment amounts.
A remortgage is the process of paying off one mortgage with the proceeds from a new mortgage using the same property as security. Often the purpose of switching is to secure a more favourable interest rate from a different lender.
The process of remortgaging does not usually involve moving home or taking out a second mortgage on the property; it is in effect the transfer of a mortgage from one lender to another.
There are four main reasons why you might choose to remortgage:
- You've come to the end of an existing deal and don't want to pay your mortgage lender's standard-variable rate as it's higher
- You are on your lender's standard-variable rate and you want to switch to a fixed or capped rate, or simply a lower rate than you are paying
- To switch to a more flexible mortgage if you want to be able to alter the pattern of your payments
- To release equity in your property if its value has gone up
For advice on remortgaging, follow this link.
Consider seeking advice from a qualified expert which will offer you extra protection and if the mortgage turns out to be unsuitable, you can complain to the Financial Ombudsman Service.
To help you choose a Financial Adviser, click here.
Almost all firms offering financial services in the UK must be authorised by The Financial Conduct Authority (FCA).
You should only deal with a financial services firm that is authorised. If you deal with an unauthorised firm you will not be covered by the Financial Ombudsman Service (FOS) or Financial Services Compensation Scheme (FSCS) if things go wrong. You can check this by searching the FCA authorised register.
Unfortunately there are firms that operate without authorisation and some knowingly run scams like share fraud. If you are unsure check the FCA List of unauthorised companies.
To acces a 10 step guide to make sure you are dealing with an authorised firm, and to protect yourself from fraud and unauthorised activity, click here.
A series of guides on all aspects of Mortgages are available from MoneyHelper.
If you found this useful please share it