Top 3 Reasons Why our Clients Remortgage

29-July-2022 12:48
in Private clients
by Sam Hodgson
 Top 3 Reasons Why our Clients Remortgage

Most people remortgage to get a better deal and save money, usually as their current deal expires. But this isn't always the case. This article explores some of the circumstances that lead our clients to remortgage and how getting the right remortgage finance is often as simple as using a specialist mortgage broker.

When you remortgage, you switch from one mortgage deal to another. You can remortgage with your current lender or choose a different lender.  The most common reason for remortgaging is when your fixed rate deal is coming to an end, and you want to avoid being switched onto your lender's standard variable rate (SVR). However, many people remortgage to achieve other goals. 

#1. Remortgage to release equity from an unencumbered house

Owning an unencumbered house means your home is mortgage free, and you own 100% home equity. Many people wonder if they can remortgage an unencumbered house. The answer is yes, you're in a great position to refinance your property, and it's known as an unencumbered remortgage.

In many cases, your home will be unencumbered because you've paid the mortgage in full, but you may have inherited a mortgage free property or paid for it in cash.

Being mortgage free is something many people aspire to, so why would you consider an unencumbered remortgage? Circumstances can change - a need may arise, which makes a remortgage the right choice.

At Clifton Private Finance, our specialist mortgage brokers can assist you with releasing equity from your house through an unencumbered remortgage. Our expertise and strong ties with specialist lenders mean we can secure you the best remortgage deal to suit your circumstances. 

Please read our full guide to unencumbered mortgages here. >>

Or book a no obligation telephone consultation to speak to one of our experts today:

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#2. Remortgage to fund home improvements

Remortgaging can be an excellent way to raise the capital needed for home improvements, to build an extension, or pay for urgent repairs on your house.

In this scenario, our clients are usually confident that their income will support the extra borrowing, and we can talk them through various options:

Apply for a further advance from your existing lender

If you are in the middle of your current fixed rate term, you can approach your existing lender to see if they will lend you more money at the same rate you are currently on. Whether they agree to this depends on your income covering the larger mortgage repayments and an up-to-date credit check. This can be the simplest way of accessing the funds you need, rather than a full remortgage.

Remortgage with your current lender

When your current mortgage is coming to an end, or you're not too far off, it could be prudent to remortgage with your existing lender to borrow more money, as long as they are offering competitive rates. This will be a less expensive option than remortgaging with a new lender as you won't have to pay any set up fees and could avoid a lengthy application process. Your current lender may waive any early exit fees if your current term hasn't run out, as they will be keen to transfer you to another of their products rather than lose you to a different lender.

Remortgage with a new lender

Our clients often approach us when they are keen to secure the lowest rates as they remortgage to release equity for home improvements. When you're remortgaging to borrow more, searching the whole market can be hugely beneficial in the long run to ensure you get the cheapest deal, even if you do end up paying an early exit fee to leave your current mortgage. A new lender often offers you an incentive through a free house valuation and legal fees. 

#3. Remortgage because of a change in circumstances

Changes in your income, employment status and life circumstances can be good reasons to remortgage and, equally, a barrier to finding a good remortgage deal. We commonly speak to clients who are finding it difficult to remortgage because their material circumstances have changed or they have become newly self employed, their income is more complex, or they are earning foreign income. 

You could also find yourself with an increase in income to support borrowing more, but your income is complex, and lenders are wary.

Here are two scenarios where you may need to remortgage in a change of circumstances:

Remortgage with Clifton Private Finance 

We provide high quality remortgage solutions for UK and international clients.

  • Remortgage finance from £100,000
  • Market leading rates
  • Access to high street, private & specialist bank mortgage deals
  • Up to 95% loan to value (residential mortgages)
  • Up to 80% loan to value (buy to let mortgages)
  • Interest only mortgage and short term finance interest roll up options
  • Maximising borrowing, e.g. mortgages for professionalslenders that will allow 5x up to 6x salary
  • Revolving mortgage options - unlock the equity in your primary home & access funds whenever you need to
  • We can help if you have complex income, e.g. income from multi currency, multiple income sources, offshore trust or family trust arrangements, where the property is held in an offshore company, bonus & dividend income & using retained profits for company owners
  • Solutions for UK expats, non-dom & foreign nationals buying or remortgaging UK property
  • Equity release for over 55s - Solutions for releasing capital in retirement, e.g. home improvements, boosting income, mitigating IHT, raising a home deposit for children/grandchildren
  • Fast, professional service. We understand that sometimes finance needs to be arranged quickly!
  • If you have assets that you would like to be leveraged as part of the transaction, such as your investment portfolio, other property or pensions; our team can look at leveraging these assets to negotiate more flexible lending criteria and more favourable interest rates to help you get the best deal
Book a no-obligation consultation with one of our expert remortgage advisors at a convenient time for you:

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Or call us now on 0203 900 4322 to discuss your requirements.