A Guide to Remortgages in Derby: Top Reasons to Consider

Remortgage Advice feat Mortgage Advisor Wayne | MoneymanTV

Remortgage Advice in Derby

Being involved in the mortgage world can come with its rewards. When you come to the end of the process you will be left with the following;

  • A dream home to settle down in and maybe one day start a family.
  • You may be in a property you can use as a stepping stone to move further up the property ladder in the future.
  • An investment purchase that may bring in additional income.

Whatever route you decided to take, you will have ultimately come to the end of your mortgage term and be wondering what the next step is. Here are just a few;

  • Sell your home and move into a larger or smaller property.
  • Put your property portfolio up for sale and look for a different investment route.
  • A popular choice amongst our customers is to take out a remortgage on their home.

What is a remortgage?

Remortgaging occurs when you move your mortgage on your current property from one to another.

When it comes to a Remortgage in Derby, you will have a range of options to choose from, with both minor or a lot larger options available depending on your situation.

Remortgage for Better Interest Rates

Normally, the initial mortgage deal you’re on will last around 2-5 years with lower fixed rates or even some rates that have been discounted.

In some cases, you may find that you will be placed onto a tracker mortgage which follows alongside the Bank of England’s base rate.

It’s likely for many customers will result in their lenders Standard Variable Rate when their term has ended. This is also known as an SVR.

In short, an SVR happens when a mortgage with an interest rate that is decided based non what the lender wishes to charge, with the number subject to change.

Unlike a tracker mortgage, this does not follow the Bank of England’s base rate.

Due to the way Standard Variable Rates work, they are usually the most expensive mortgage option a customer can go for. This is why some people explore the route of remortgaging for a better rate.

Further down the line, you may find that you have saved some money on your mortgage repayments each calendar month.

Remortgage for Home Improvements

Raise Money for Home Improvements | MoneymanTV

When you get a couple of years into your home residence, you may be feeling a change and looking at giving your home a makeover.

This could be an extra room or more living space for your children or furniture, a new kitchen, a home office, or maybe even a loft conversion.

Some homeowners go for this option instead of moving into a larger house. You may find that you can release equity that exists in their home via taking out a remortgage when their term ends. By doing this, you can use the funds to cover the costs of any home improvements.

Taking out a large project like a home renovation can be a little overwhelming. It will also require you to get planning permission to do any of these projects.

On the other hand, many homeowners who have experienced this would likely say that it’s not as stressful and more rewarding to take on a home project to modify your home further instead of going through the process of moving home.

Further down the line, your plans could benefit you even more. Creating more space and having good quality craftsmanship could lead to a property value increase which can benefit you if you decide to sell up or rent out.

Remortgage for Changes to Your Term

Through our experience, we find that a plethora of customers who get in touch with our team are looking at the option to Remortgage in Derby for a better mortgage term.

This can be done by reducing the length of the term they are currently on or switching to a more suitable and flexible mortgage product.

By reducing the length of your mortgage term means that you won’t be paying your mortgage back for as long as you otherwise would’ve, however, it does increase your monthly mortgage repayments.

You will be paying a lot less each month if you have a longer mortgage term.

Sometimes, customers would opt for a more flexible mortgage term. The benefit is that this could result in you having the option to overpay at a later date meaning it pays off much quicker.

When it comes to flexible mortgages, you may also allow a homeowner to carry the same mortgage and rates over to a different property, if it’s ever needed in the future.

The purpose of a flexible mortgage sounds like the perfect option for many customers, however, they are usually taken out as a tracker mortgage, which was mentioned previously and follow the Bank of England base rate.

This does mean that your monthly mortgage payments could vary depending on the interest rate, this does make them not as reliable and consistent.

Remortgage to Release Equity

Since the 2007 market crash, property prices have risen since then. The majority of homeowners should have some equity sitting on their property.

You can work this amount out by looking at the difference between the remaining mortgage balance and the current property value.

Again, many homeowners will go for a remortgage as a way to fund any home improvements they’re planning to make. Along with this, there are many other options out there.

Additional options we find some customers use this equity for include covering long-term costs, providing a boost to their income, going on their dream holiday, paying off an interest-only mortgage, or to even just having some extra cash to spend.

In certain cases, we will also find that a number of buy-to-let landlords in Derby will choose to remortgage to release equity as a way to cover the deposit that they need to purchase additional properties to build their portfolio.

An Equity Release in Derby is aimed to those who are aged 55+ with a property that is worth at least £70,000. If eligible, this could be an option for you! For further information regarding this option, it’s important that you speak to an expert later life mortgage advisor.

Remortgage to Consolidate Debt

Keeping on the subject of equity release, it’s also key to mention customers who use their equity to pay off any unsecured debts that may have accrued over time.

This may sound like a pretty simple concept, debt consolidation will not only factor in the amount of debt owed, but the property’s value along with the performance of your credit rating at that time.

The certain aspects they into may, unfortunately, result in you being limited on the amount you can borrow for a remortgage, depending on your personal and financial situation.

Furthermore, for those who are serious about using this to pay off your previous mortgage and your debts, you will be required to borrow a greater amount than your outstanding mortgage. You may find that your monthly mortgage payments increase.

This isn’t the best situation to be in, however, it will provide you with reassurance that should you need the help, you have some options to choose from.

In the circumstance where your credit rating is not in the best state, there are other options available that could provide you with mortgage success. Keep in mind that these will be straightforward and will need very specialist Remortgage Advice in Derby prior to going ahead with them.

Unfortunately, getting some help and support from a Specialist Mortgage Advisor in Derby may not guarantee your mortgage success.

It’s still important, however, to enquire with an experienced Mortgage Broker in Derby before consolidating and securing any debts against your asset which is your home.

Experienced Mortgage Advisors in Derby – Get in Touch

For homeowners with a mortgage term that is coming to its end and are offering what their option may be for remortgaging, we would always recommend that you get in touch with a reputable Mortgage Broker in Derby like ourselves.

By having a Mortgage Advisor in Derby helping you through the process, you will be able to talk about your situation which will then determine what your next step is on your home owning journey.

We work hard in ensuring your mortgage journey is smoother the second time around, hopefully as smooth as your first. Here at Derbymoneyman, we strive to provide a tailored service that fulfils customer satisfaction.


Last Edited 08/08/2022

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