BELFAST CITY CENTRE: 028 9013 7392 | EAST BELFAST OFFICE: 028 9560 9410 | ORMEAU ROAD, BELFAST: 028 9521 9349 | LISBURN RD BELFAST: 028 9521 9351 | DROMORE: 028 9210 6060 | LISBURN: 028 9279 4300 | GLENGORMLEY: 028 9072 7636 | ARMAGH: 028 3743 0770 | LURGAN: 028 3898 4004 | DUNGANNON: 028 8747 0270 | COALISLAND: 075 6180 7334 | COOKSTOWN: 028 8673 1055 

Contact Your Local Branch

BELFAST, CITY CENTRE: 028 9013 7392
BELFAST, EAST OFFICE: 028 9560 9410
BELFAST, ORMEAU ROAD: 028 9521 9349
BELFAST, LISBURN ROAD: 028 9521 9351
DROMORE: 028 9210 6060
LISBURN: 028 9279 4300
GLENGORMLEY: 028 9072 7636
ARMAGH: 028 3743 0770
LURGAN: 028 3898 4004
DUNGANNON: 028 8747 0270
COALISLAND: 075 6180 7334
COOKSTOWN: 028 8673 1055

What You Need to Know Before You Refinance Your Home

by | Apr 2, 2024 | Uncategorized | 0 comments

In the world of home ownership, taking out a mortgage is a significant step, often seen as a long-term financial commitment. But what happens when the deal you initially thought was perfect no longer suits your needs? In Lisburn, the concept of remortgaging is becoming an increasingly attractive option for homeowners seeking better financial terms. At The Mortgage Clinic, we specialise in mortgages in Lisburn and are here to guide you through the intricacies of remortgaging, ensuring you’re equipped with all the knowledge you need to make an informed decision.

Understanding Remortgaging

At its core, remortgaging essentially involves you switching your current mortgage to a new deal, usually with a different lender. This doesn’t mean you are buying a new home. Instead, you are searching for a new financial agreement that better matches your current needs or offers more favorable terms. It’s similar to changing your phone plan to enjoy better benefits; you aren’t changing your phone, just the amount you pay and the benefits you receive from it.

The decision to look into remortgaging in Lisburn can stem from several situations. Maybe you’ve noticed that interest rates have gone down since you first took out your mortgage, or perhaps you’ve paid off a significant chunk of your mortgage and believe you could qualify for a lower rate now. Alternatively, your home’s value might have increased, giving you a stronger standing when it comes to loan-to-value ratios—a key factor lenders look at when determining your mortgage terms.

At The Mortgage Clinic here in Lisburn, we specialise in helping homeowners navigate their mortgages in Lisburn, ensuring they’re not only comfortable with their monthly payments but also confident they’re getting the best deal possible.

Why Consider Remortgaging?

For many homeowners in Lisburn, the decision to remortgage isn’t taken lightly. However, it can be a strategic financial move with several compelling benefits. Here’s why remortgaging can be worth considering:

  1. Escape Higher Rates: Often, mortgages start with a fixed, tracker, or discount rate for an initial period, usually 2-5 years. Once this period ends, lenders typically move you to their Standard Variable Rate (SVR), which is often higher. Remortgaging can help you avoid this increase by securing a deal with lower interest rates, keeping your monthly payments more manageable.
  2. Your Property’s Value Has Increased: If your home in Lisburn has increased in value since you took out your mortgage, you might find yourself in a better loan-to-value (LTV) bracket. A lower LTV usually means access to better rates because the risk to the lender decreases as the equity in your home increases.
  3. Change in Interest Rates: For those with a variable-rate mortgage, shifts in the Bank of England’s base rate can affect your monthly payments. Remortgaging to a fixed-rate deal can offer stability, protecting you from potential increases in interest rates.
  4. Switching Mortgage Types: Maybe you’re currently on an interest-only mortgage and want to switch to a repayment mortgage to start chipping away at the principal. Remortgaging can facilitate this switch, aligning your mortgage more closely with your current financial goals and lifestyle.

The landscape of mortgages in Lisburn offers various opportunities to optimise your financial situation through remortgaging. Whether it’s securing lower monthly payments, adjusting to a more suitable mortgage type, or tapping into your home’s equity, there are plenty of reasons to consider this option. At The Mortgage Clinic in Lisburn, we’re committed to helping you understand these benefits and navigate the process seamlessly.

Timing Your Remortgage

If you’re nearing the end of your mortgage’s initial rate period, it’s wise to begin looking into remortgaging options a few months beforehand. This foresight prevents you from defaulting to your lender’s Standard Variable Rate (SVR), which is typically higher. Starting early ensures you have ample time to find the best deals in Lisburn and get the paperwork sorted without feeling rushed.

Staying attuned to the mortgage market and broader economic trends in Lisburn can also signal the right time to make a move. A drop in interest rates below what you’re currently paying, or indications they might increase, suggests it could be beneficial to lock in a lower rate through remortgaging.

Your personal financial milestones can also guide the timing of a remortgage. Significant repayments on your mortgage or an increase in your home’s value can improve your loan-to-value ratio, potentially qualifying you for more favourable interest rates. It’s beneficial to reassess your mortgage options when these positive changes in your financial standing occur.

Additionally, your individual financial goals or needs might prompt a remortgage. Whether you’re eyeing home improvements, need to consolidate debt, or require cash for a significant outlay, remortgaging to release equity can provide the necessary funds.

For those on a fixed-rate mortgage, the conclusion of this period is a critical time to consider remortgaging to avoid the jump to a potentially higher SVR. Finding a new fixed-rate deal can protect you from future rate increases, ensuring your payments remain manageable.

In a dynamic setting like Lisburn, timing your remortgage with precision can mean reaping maximum financial rewards. At The Mortgage Clinic in Lisburn, we’re equipped to navigate the local market intricacies, ensuring you make timely and advantageous remortgaging decisions that align with both market trends and your unique financial landscape.

How Remortgaging Works

Remortgaging in Lisburn is a process that, while significant, doesn’t have to be daunting. It essentially involves moving from your current mortgage to a new one, potentially with a different lender, to secure better terms or release equity from your property. This might sound complex, but it’s quite straightforward when you break it down.

Firstly, you’re not buying a new home but simply changing the financial product attached to your existing home. It’s akin to finding a better deal on your car insurance; the car stays the same, but you pay less for it or get better coverage. The aim here is to either reduce your monthly payments, lock in a lower interest rate, or tap into the equity that’s built up in your property over time.

The decision to remortgage might be triggered by several factors – perhaps you’ve come to the end of a fixed-rate period, and you’re about to be moved onto your lender’s standard variable rate, which is typically higher. Or, you’ve noticed that mortgage rates have dropped since you last secured your mortgage, and you’re keen to take advantage of these lower rates. Maybe your home in Lisburn has increased in value, and you want to release some of this equity for home improvements or to consolidate debts.

Once you’ve decided to explore remortgaging, the process involves assessing your current financial situation, shopping around for the best deal that suits your needs, and then applying for this new mortgage. This application process requires thorough financial checks and property valuation to ensure the new mortgage deal is suitable for your circumstances.

Upon approval, your new mortgage will pay off your existing one, and you’ll start making payments under the new terms. It’s a seamless transition that could result in significant savings or financial flexibility.

How to Get Started with Remortgaging

Beginning the remortgaging process in Lisburn can seem like a significant undertaking, but with the right guidance and preparation, it can be a smooth and rewarding experience. The journey starts with evaluating your existing mortgage. How much are you currently paying? What interest rate are you on, and is it due to change soon? Knowing these details helps determine if remortgaging can offer you a better deal. Next, consider your financial health, including your credit score, as lenders will use this information to decide whether to offer you a mortgage and at what rate.

Once you have a clear picture of your current situation, it’s time to explore the market. Mortgages in Lisburn vary widely, with different rates, terms, and conditions. Looking around to see what’s available can help you identify potential savings or more favourable terms than your current arrangement.

After gathering this information, the next step is to approach lenders or, preferably, a mortgage broker. Mortgage brokers have access to a wide range of products and can offer advice tailored to your specific circumstances. They can help navigate the complex landscape of mortgages in Lisburn, finding deals that you might not be able to access on your own.

When you’ve found a new mortgage deal that suits your needs, the application process begins. This involves providing detailed information about your finances, just as you did for your original mortgage. The lender will conduct a valuation of your property to ensure it provides sufficient security for the mortgage.

Finally, once all the paperwork is completed and the new mortgage is in place, you’ll start making payments under your new terms. If you’ve chosen wisely, this could mean lower monthly payments, a lower interest rate, or access to cash that was previously tied up in your home’s equity.

The Path Forward with Remortgaging in Lisburn

At The Mortgage Clinic in Lisburn, our commitment to you goes beyond just finding a new mortgage deal. We aim to build lasting relationships with our clients, providing them with ongoing support and advice as their financial circumstances evolve. Our team of dedicated professionals is always ready to offer expert guidance, from mortgages in Lisburn to exploring your initial remortgaging options to completing the final paperwork

Understanding that the world of mortgages in Lisburn can seem complex, we strive to simplify this process, ensuring you feel confident and well-informed at every turn. Our goal is to empower you to make the best decisions for your future, with a remortgage that brings you closer to your financial objectives, whether that’s saving on monthly payments, securing a lower interest rate, or unlocking the equity in your home for other significant investments.

If you’re contemplating the idea of remortgaging in Lisburn, or if you’re simply curious about what options might be available to you, reach out to us at The Mortgage Clinic. Let’s start a conversation about how we can support your journey towards a more secure and fulfilling financial future. Together, we’ll navigate the remortgaging process, ensuring that you achieve the best possible outcome for your unique situation.

Helmut Elstner

Managing Director – Independent Mortgage Broker and Insurance Advisor

Helmut started working in financial services in early 2012 and founded The Mortgage Clinic in Belfast in early 2015. He specialises in all types of mortgages from First Time Buyer, Co-ownership, Self Build, Home Movers, Remortgages, Debt consolidation, to Buy to Let.

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