If your current mortgage deal is coming to an end, or if you’ve been with your existing lender for a while, this could be a very good time to think about switching to get a better, more cost- effective mortgage deal, and at the same time increase the amount you’re borrowing.
In some cases, homeowners can save hundreds of pounds a year by moving their mortgage to a more attractive rate with a different lender. Remortgaging can also work if your property has increased in value and you want to free up some cash from the equity tied up in your home, or if you want to make higher repayments to shorten your mortgage term.
If your current mortgage represents less than the maximum value that your current lender will advance you, then you could apply to increase the amount of money you borrow. Homeowners often consider this route if they want to fund home improvements, or to raise cash to provide a deposit for a second home, or to give funds to another family member to help them get onto the property ladder.
Your adviser will be able to explain the terms on which your lender would be prepared to do this, and go through the pros and cons.
For some mortgage holders who come to the end of their initial special offer rate, this lender may offer another special rate to encourage customers to stay with them.
Your adviser can help work out what’s the best course of action to take when this offer is made.
Secured or second charge loans are separate from your existing mortgage. With this type of loan, you’re in effect taking out a new and separate mortgage in addition to your existing one, using your property as security for the repayment of the loan.
If you want to borrow money, but don’t want to use your property as security, then you may be able to borrow money on an unsecured basis by taking out a personal loan.
Your adviser will be able to explain the different options to you, and provide up-to-date details of what’s on offer in the marketplace.