Remortgaging & Advice

What Is Remortgaging?

Whether you’re a long-time homeowner or new to the property market, you’ve probably heard of the term “remortgaging.” But what does it mean exactly?

Simply put, remortgaging is the process of switching your existing mortgage to a new deal. You can remortgage with a different lender or stay with your existing provider. You’re not moving house and your new mortgage is secured against the same property.

Remortgages are more common than you might think, with around a third of all home loans in the UK being remortgages. There are many different reasons why a homeowner might choose to remortgage. In most cases, it’s straightforward: to switch to a better deal and save money.

Just as when you originally secured your mortgage, remortgaging is a huge financial decision that requires careful thought, research and number crunching. So it’s always best to take advice from a fully-qualified and experienced mortgage advisor in order to survey the options that are out there and secure the best remortgage deal that suits you.

Huxley Mortgage Services are mortgage advisors in Cheshire who can give you the help and advice that you need.

Why Remortgage?

There are numerous reasons why homeowners choose to remortgage. The most obvious and common reason is to save money. Or, if your financial situation changes, you might be looking for a new deal that gives you more flexibility and control over your mortgage payments. Whatever your motive, there are many benefits to remortgaging.

To save money on your mortgage

While it might sound like a hassle, remortgaging is actually relatively straightforward and can potentially save you thousands of pounds over the term of your mortgage.

If you’re currently on a fixed rate mortgage (where you pay the same amount each month for a set period of time, usually two years or five years) and your fixed term is about to end, your mortgage will revert to your lender’s standard variable rate (SVR), which tends to be higher. Not only will this hike up your monthly mortgage payments, but it can make budgeting more difficult and unpredictable due to the fluctuating rate.

In this case, you’ll benefit from switching to a new fixed rate mortgage that offers you a lower interest rate and a fixed payment each month. Your current lender will likely contact you a few months before your existing fixed term ends to offer you a new deal (they want to keep you as a customer, after all!). But it won’t hurt to see what competing lenders can offer you.

Alternatively, if it’s been a while since you last reviewed your financial situation, you might be paying over the odds on your current mortgage when there are better deals are out there waiting to be taken advantage of, especially if your house has gone up in value.

In any case, remortgaging is an ideal opportunity for you to assess your finances, find the best deal based on your circumstances, and make significant savings on your mortgage.

To get more flexibility with your mortgage

Some mortgages (like an offset mortgage) are what’s known as flexible mortgages, allowing homeowners to overpay, underpay or suspend their mortgage payments altogether.

As the name suggests, mortgage overpayments are when you pay more towards your mortgage than the amount you agreed upon with your lender. An overpayment can be either a lump sum (perhaps from an inheritance) or an increase in your monthly payments (which you might do if you’ve had a pay rise).

If you’re in a position to do so, making overpayments on your mortgage can save you a lot of money in the long run. It’s simple math: the quicker you pay off your mortgage, the less interest you pay. Plus, you’ll bring yourself closer to washing your hands of mortgage payments altogether and owning your house outright.

However, it’s worth checking to see if your current mortgage allows you to make overpayments. Many fixed rate deals don’t let you pay more than 10% of your mortgage off within a year. If you do overpay, they’ll charge you between 1% and 5% of the amount you overpaid.

In this case, you’ll benefit from remortgaging and finding a deal that gives you the flexibility you need without the strict limits or penalty charges.

Likewise, some flexible mortgages allow you to underpay your mortgage or take “payment holidays” (where you suspend mortgage payments altogether) for a short period of time. This can be useful if your financial situation changes. However, most lenders only allow this if you’ve made enough overpayments in the past.

You want to borrow more money

Remortgaging not only gives you the chance to find a better deal, it’s an opportunity for you to borrow a larger amount of money. Perhaps you want to fund home improvements, pay for a wedding or cover the cost of your child’s university tuition fees. Because you’re using your house as collateral, it’s a low-risk option for lenders, so remortgaging allows you to borrow more money — and at lower interest rates — than a personal loan.

However, be aware that remortgaging for a larger amount of money will cost you more in interest payments in the long run.

How We Can Help If You’re Remortgaging

Mortgages are what Huxley specialise in. We’re an independent, whole of market mortgage brokers in Chester with access to over 140 lenders, meaning our experienced and fully-qualified advisors can help you find the right mortgage for you. Thanks to our contacts, we can offer you exclusive mortgage deals that you won’t be able to get by going direct to lenders.

Being a local independent mortgage broker means we always put our clients’ needs first. We’ll talk through everything face-to-face or over the phone (whichever you prefer) so we can tailor our service to suit your individual needs and circumstances. Our red-carpet service means we’ll give you constant updates throughout the entire process and offer you evening and weekend appointments seven days a week while managing your remortgage from start to finish.

If you’re looking to remortgage your home in the Chester area, get a free remortgage quote or get in touch today.

Moving Home

What Are Your Mortgage Options When Moving Home?

Moving home is an exciting time, but it requires plenty of planning, research and organisation, not to mention expenses. Selling your current house and finding a new home to buy (while managing the dreaded property chain) is difficult enough. On top of this, there’s an important question that needs answering: what do I do with my mortgage?

Here are the mortgage options that are available to you when moving home:

You can transfer (or “port”) your existing mortgage to your new home

These days, most mortgages are “portable,” meaning you have the option to transfer your current mortgage across to your new home. However, you effectively have to reapply for your current mortgage, meaning you have to go through the rigorous checks all over again. If your financial situation has remained in good shape since you originally took out your mortgage, you should be fine. But if you’ve accumulated debt or bad credit history, for example, you may fail to qualify for a mortgage.

Porting your mortgage might be the most sensible option if you’re still in the initial term of your mortgage. If you switch mortgages within this term, you could face both an exit fee (between £75 and £300) and an early repayment charge (between 1% and 5% of your mortgage).

However, if you’re on a standard variable rate — the default rate lenders will place you on after your initial term expires — sticking with the same deal could mean you’re missing out on more competitive options that are out there in the marketplace. In this case, remortgaging will be more beneficial.

You can remortgage

Remortgaging is when you switch your current mortgage to a new deal. You can stick with the same lender or test the waters and see what different providers can offer you. When moving house, you’re likely to remortgage for one of two reasons.

If your new home is more expensive than your current house, you’ll need to borrow more money to cover the cost. Your current lender might offer you a further advance on your existing mortgage, but this is usually at a different rate. In any case, a bigger mortgage will likely mean higher rates, so you’ll need to prove to your lender that you can afford to keep up with payments.

Alternatively, it might make sense to remortgage if you’re downsizing (unless you can afford to buy your new house outright, of course). Depending on the amount of your outstanding mortgage and any other debts you may have, moving into a cheaper house will probably free up some capital. You can then use this money to put down a larger deposit on your new home, lowering your loan-to-value ratio and getting lower interest rates.

Whatever your financial situation, you’ll need to crunch the numbers before pulling the trigger. Remortgaging isn’t free; there are fees involved with taking out a new mortgage and charges associated with leaving your current deal.

How We Can Help If You’re Moving Home

Finding the right mortgage requires careful thought, planning and number crunching. In the middle of a house move, it can be hard to find the time to do this. At Huxley Mortgage Services, we’re here to help you find the most suitable mortgage for your situation, so you can focus on moving home.

We’re independent, whole of market mortgage advisors in Chester with access to over 140 lenders, meaning we can select from a wide range of options that you won’t be able to get by going direct to lenders. Our fully-qualified and experienced advisors will guide you through the process and help you find the right mortgage for you.

Our red-carpet service is here to make your potentially stressful house move as seamless as possible. We’ll provide you with constant updates through the entire process, as well as the option of evening and weekend appointments seven days a week, while managing your mortgage from first contact to completion.

If you’re moving home in the Chester area and looking to remortgage, get a free remortgage quote from us or get in touch with us today.

Bridging Loans

What Is A Bridging Loan?

A bridging loan is a short-term loan used by property buyers to “bridge the gap” between the sale of their current home and the purchase of their new house. It’s a flexible and accessible financial solution, secured against your property, that helps you get from A to B.

Bridging loans can be useful if you want (or need) to move house quickly without waiting to complete the sale of your current property; if property chain issues are delaying — or threatening to derail — your house move; or if you’ve found your dream home and don’t want to risk it being snapped up.

Bridging loans are also popular amongst property developers as a way to finance their projects, people who buy property at auctions (where you only have 28 days to produce the funds), and homeowners funding a refurbishment or extension.

What Types Of Bridging Loans Are Available?

There are two types of bridging loans. A closed bridging loan requires you to explain how you’ll repay the loan and agree upon a fixed date to do so, usually within a few months. This is called an “exit plan.”

An open bridging loan, on the other hand, doesn’t have an exit plan. You aren’t required to explain how you’ll repay the loan, meaning you’ll receive the funds much quicker (which is useful if you need the money urgently). You’re also given a longer and more flexible window to repay the loan, typically up to a year.

Bridging loans are available with a fixed rate or a variable rate. Because they tend to be shorter than other loans, the interest is charged monthly as opposed to using an annual percentage rate (APR). You can pay the interest on a bridging loan in three different ways:

Monthly basis — Where you pay the interest each month and it is not added to the amount of your loan.

Rolled-up deal — Where, instead of paying interest each month, your interest payments are “rolled up” and you pay them in one lump sum at the end of the agreed upon term, along with the full loan amount.

Retained interest — Where you borrow the interest from the bridging lender when you apply for the loan. You then pay everything back at the end of your term.

What Are The Benefits Of A Bridging Loan?

There are numerous advantages of taking out a bridging loan, depending on your needs and circumstances.

You get the money fast — While other loans can take weeks to be approved, you can get a bridging loan in a matter of days. However, it depends on how much money you’re borrowing and what you’re using it for.

You can borrow a large amount of money — Bridging loans allow you to borrow between £5,000 and £250 million, depending on the value of the property you’re securing the loan against. The more properties you put forward, the more money you can borrow.

Flexibility — An open bridging loan, in particular, offers plenty of flexibility. You can get the money quickly and have up to a certain period of time to pay it back, as opposed to a fixed date. Plus, you can choose your interest rate (fixed or variable) and how you’ll pay it (monthly, rolled-up or retained interest).

How We Can Help If You Need A Bridging Loan?

Whether you’re looking to fund a property development, pay for home improvements or need to bridge the gap during a house move, Huxley can help you secure a bridging loan that suits your individual needs and circumstances.

We’re an independent, whole of market mortgage brokers in Cheshire with access to more than 140 lenders and a team of reliable and fully-qualified advisors who will guide you through the process of securing a bridging loan. Our red-carpet service gives you constant updates, evening and weekend appointments, and the peace of mind that your bridging loan is being handled by professionals.

If you’re looking for a bridging loan in the Chester area, get in touch with Huxley today.

Secured Loans

What Is A Secured Loan?

A secured loan — commonly known as a homeowners loan — is a loan taken out against an asset that you own, i.e. property. It allows homeowners to borrow money using their current house as collateral. A secured loan can be a second-charge mortgage (if you already have a mortgage on your house) or a first-charge mortgage (if you own your house without a mortgage).

A secured loan is a useful option if you need to borrow a large amount of money (+£25,000), you’re looking for a longer loan term (+5 years) or you’re having trouble getting approved for a personal loan, perhaps due to poor credit. Secured loans are available with variable rates (where the amount of interest you pay each month fluctuates) or fixed rates (where you pay a set amount each month).

A secured loan can be beneficial depending on your needs and circumstances, but because you’re using your home as collateral, they’re riskier in nature.

There’s also such a thing as an unsecured loan. This type of loan doesn’t require you to put up your property (or any other asset) as collateral. Lenders see them as higher-risk, so they tend to be more expensive and you’ll need a strong credit rating to be approved. Personal loans are often unsecured loans.

Things To Consider Before Getting A Secured Loan

Taking out any type of loan requires careful thought, planning and number crunching. But due to the higher risk and potentially large borrowing sums of a secured loan, it’s critical that you make an informed decision before getting a secured loan. Here are some important things to consider:

Your financial situation — Can you afford to keep up with the monthly repayments? How likely is it that your lifestyle or financial situation will change in the near future? Are you looking to buy a house, plan a wedding or start a family? If something unexpected comes up like an urgent vehicle repair, do you have the available funds to pay for that and still meet your loan repayments?

The amount of equity in your home — Lenders will look at how much equity you have in your home before approving you for a secured loan. Your equity is essentially the difference between how much your house is worth and the size of your mortgage. The lower your mortgage, the more equity you’ll have. This lets a lender know how much money they could recoup by selling your home if you default on the loan.

What Are The Benefits Of A Secured Loan?

A secured loan has several perks and it can be a beneficial option depending on your needs and circumstances. Here are the advantages of a secured loan:

You can borrow a large amount of money — It can be difficult to borrow more than £25,000 with a personal loan. A secured loan, on the other hand, allows you to borrow up to £500,000, depending on the value of your property. This makes a secured loan a useful option if you’re planning major home improvements or paying for university tuition fees.

They have lower interest rates — Whether you choose a variable rate or a fixed rate, secured loans have lower interest rates than personal (or unsecured) loans. This is because a secured loan is taken out against your home and lowers the risk for lenders.

You can get a longer loan term — With a secured loan, you can stretch out the loan term over a longer period of time, usually between five and 25 years. This makes monthly payments more affordable and gives you flexibility. You can still take out a short-term secured loan from anywhere between one and five years.

They’re easier to secure — It’s easier to be approved for a secured loan. This is because you’re putting up your home as collateral, which lowers the risk for the lender. A secured loan is a useful solution if you’re having trouble being approved for a personal loan.

How We Can Help If You Need A Secured Loan.

Whatever reason you have for seeking a secured loan, Huxley can help you obtain one that best suits your individual situation.

We’re independent Chester mortgage advisors who have access to more than 140 lenders, giving us a huge range of secured loans to choose from, including exclusive deals that you can’t get by going direct to lenders. More choice means more chance of finding one that’s right for you.

As a mortgage broker that puts our clients first, our-red carpet service means you get regular updates, evening and weekend appointments seven days a week, and an experienced and fully-qualified advisor who handles your secured loan from start to finish.

If you’re looking for a secured loan in the Chester area, get in touch with Huxley Mortgage Services today.