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Remortgaging When House Value Has Increased in Leicester

Owning a property, whether it’s your family home or a buy to let investment, is a significant asset. It’s not just a place to live, but holds the potential for financial gain if you ever look to sell, as well as being something you can pass down to future generations.

The property market is dynamic and ever-changing, and property prices can skyrocket during certain periods. When this happens, it may be beneficial for you to explore your options for a remortgage in Leicester.

Doing so could give you access to a more favourable loan-to-value ratio and better interest rates, potentially allowing you to maximise your investment.

What is a loan to value and why do people remortgage in Leicester for a better one?

Loan to value (LTV) is the ratio of mortgage to the property’s market value, expressed as a percentage. For instance, if you buy a property for £100,000 with a deposit of 10% (£10,000), you’ll need a mortgage with a 90% loan to value.

Mortgage loan to values are divided into tiers or brackets. Typically, the lowest bracket will be 60% and increase to the highest ratio of 95%. The brackets or tiers offered will vary depending on the mortgage lender.

If you have a lower loan to value, you’ll have access to mortgage deals with more competitive interest rates.

In the example above, let’s say your property value has increased to £110,000 and your initial mortgage balance of £90,000 has come down to £80,000 after some years. This means that your new loan to value is 73%.

If you were to remortgage in Leicester, you would now be eligible for a 75% loan to value mortgage, which should have a more competitive rate of interest. Other factors such as market conditions will also determine this interest rate at the time of remortgaging.

The reason why lower loan to value mortgages have more competitive interest rates is that you pose less risk to the mortgage lender.

How do I find out the value of my property?

In order to access better rates or terms when you remortgage in Leicester, you will need to determine the current value of your property. This can be done by obtaining a valuation, which involves either an Automated Valuation Model (AVM) or a physical valuation.

An AVM involves using a database to cross-reference similar properties in the same area to determine the value, without someone physically coming to your location.

On the other hand, a physical valuation involves an inspector coming to your home to inspect both the interior and exterior, taking into account any home improvements or extensions you may have had.

If you prefer a physical valuation, you can discuss this with your mortgage advisor in Leicester during your free appointment. It’s important to note that when you remortgage, you’ll be switching to a new mortgage lender, unlike a product transfer where you stay with the same mortgage lender.

The new mortgage lender will want to know the value of the property they will be lending against as part of their risk assessment.

Remortgage in Leicester to Release Equity When Home Value Has Increased

While leveraging the equity in your home can sometimes lead to better deals, another reason to remortgage in Leicester is to release equity for other desired purposes.

This is often done for home improvements or other reasons, but it requires careful planning. When you remortgage, you’ll be taking out a new mortgage to replace the old one, but with a higher loan-to-value ratio.

As a result, your monthly mortgage payments may increase. That being said, the goal is to invest in your home and increase its value so that when you remortgage in Leicester again, you’ll be on a lower loan-to-value ratio.

It’s essential to have a well thought out plan and gauge the markets, especially when dealing with such a significant financial investment like your home. A mortgage advisor in Leicester can provide guidance on the best approach for your situation.

Can I remortgage in Leicester early if the value of my home has increased?

There may be occasions where you consider remortgaging earlier than expected. Although remortgaging in Leicester before your fixed-term ends is technically considered “early”, you might have the option to do so even a year before.

Breaking your contract terms could result in paying an early repayment charge (ERC), which is a downside to this option.

While it’s impossible to predict housing market conditions, people usually choose to exit their mortgage early for compelling reasons. If you plan to remortgage early, it’s advisable to engage a mortgage broker in Leicester to help you assess your options.

For instance, during the COVID-19 pandemic, the Bank of England base rate dropped to historic lows, allowing those due to remortgage in Leicester at the end of their fixed rate period to enjoy low interest rates.

On the other hand, if you were a year away from your fixed-rate ending, you wouldn’t be able to benefit unless you remortgaged early and extended your period.

This scenario is rare and unique, given that mortgage lenders withdrew most of their products, limiting people’s options.

Yet, it exemplifies how remortgaging early could financially benefit you. If your property’s value has appreciated, it’s an opportune time to consider remortgaging early to take advantage of lower loan-to-value rates.

But keep in mind that you might still incur an ERC and other costs, such as arrangement, valuation, and solicitor fees, on your new mortgage.

So, it’s crucial to weigh the potential savings against the overall costs before committing. Speaking with a mortgage broker in Leicester is recommended to fully understand your options.

Can I Remortgage in Leicester and Extend The Term?

If you’re a homeowner in Leicester, there are many reasons why you might consider remortgaging your property. Perhaps you want to release equity to finance a large expense, like home improvements or debt consolidation.

Alternatively, you might be looking for a better deal on your mortgage repayments or want to switch to a different type of mortgage product.

Whatever your reasons, it’s important to explore all of your options when it comes to remortgaging. While many people focus on getting a lower interest rate or releasing equity, there’s another option that you might not have considered: remortgaging to extend your term.

By extending your mortgage term, you could potentially lower your monthly repayments, making them more affordable and giving you greater financial flexibility.

This could be especially beneficial if you’re experiencing financial difficulties, or if you want to free up some extra cash to invest in other areas of your life.

At Leicestermoneyman, we understand that every homeowner’s situation is unique, which is why we offer a range of remortgaging options to suit your individual needs.

Whether you’re looking to release equity, lower your monthly payments, or extend your term, our experienced advisors can help you find the best solution for your circumstances.

So if you’re considering remortgaging in Leicester, be sure to explore all of your options – including the possibility of extending your term – and get in touch with us today to find out how we can help you achieve your financial goals.

Why would I remortgage in Leicester to extend my term?

The length of time you agree to pay back your mortgage, known as the term, can significantly impact your monthly mortgage payments. Many homeowners opt for a term of 25-30 years, which can be daunting to pay back such a large amount over a long duration.

If you are part way through your mortgage term, you may find it challenging to keep up with your payments, especially if other bills have increased. In such a scenario, you may consider remortgaging to extend your term.

By extending your term, you can spread your mortgage payments over a more extended period, which can lead to lower monthly payments, thereby freeing up more disposable income. There is a downside to this option as you will end up paying more back overall, including additional interest.

It is crucial to weigh the pros and cons of extending your term before making a decision. While it can make your monthly payments more affordable, it may not be the best option for everyone. You may end up paying more in the long run, possibly even into your retirement.

If you are considering a remortgage in Leicester, there are several options available, including remortgaging to release equity or for home improvements. Extending your term is another possibility, but it is essential to seek professional advice before making a final decision.

Can I remortgage in Leicester to extend my term if I’m borrowing more money?

Extending your term can be a viable option if you’re looking to remortgage in Leicester and need to borrow additional funds, release equity, make home improvements, or consolidate debts. It’s important, however, to weigh the pros and cons before making a decision.

Extending your term can lower your monthly mortgage payments and increase your disposable income, making it easier to manage your finances. This can be especially helpful if you’re going through a difficult financial period, facing unexpected expenses, or experiencing a change in circumstances.

On the other hand, extending your term will mean that you’re paying interest over a longer period, which can result in you paying more overall. This is something to keep in mind, especially if you’re approaching retirement age or have other long-term financial goals.

It’s important to note that extending your term may not always be possible, as some lenders may have specific criteria or restrictions. It’s also important to consider other factors, such as fees and charges, when exploring your options for remortgaging in Leicester.

Ultimately, it’s important to seek professional mortgage advice and do your research before making any decisions about remortgaging in Leicester.

Whether you’re looking to extend your term, release equity, consolidate debts, or make home improvements, there are a variety of paths you can take to achieve your financial goals.

You should think carefully before securing other debts against your home. By adding your unsecured debts to your mortgage, which is secured on your home, you are potentially putting your home at risk if you cannot make the required repayments.

Although the total monthly cost of servicing your debt may have reduced, the total cost of repayment may still have risen as the term of your mortgage is longer than it may have taken to repay the debts originally.

When wouldn’t I be able to remortgage in Leicester and extend my term?

Remortgaging can be a great option for homeowners who are looking to ease their financial burden. However, it’s important to note that each lender has their own set of criteria that must be met before extending the term of a mortgage.

Factors such as age, type of mortgage, and any outstanding mortgage payment debts can all play a role in determining whether or not you are eligible for a remortgage in Leicester to extend your term.

Some lenders may have strict age restrictions, requiring borrowers to pay off their mortgage before they reach a certain age.

Fortunately, if remortgaging to extend your term is not an option for you, there are other paths to consider. A dedicated mortgage advisor in Leicester can help you explore alternative solutions that will help lower your monthly payments and improve your financial situation.

At our company, we believe that everyone deserves to enjoy the benefits of owning a home without the stress of high mortgage payments. That’s why we take the time to carefully review each client’s unique situation and recommend the most suitable options for them.

Our goal is to help our clients achieve their financial goals and find the best possible solution to meet their needs.

Can I remortgage in Leicester to extend the term of my interest only mortgage?

Extending the term of an interest only mortgage can be a challenge, as not many lenders allow it. While some may allow it, you will still need to pay the lump sum of interest at the end of the term, and some lenders may not want you to delay it any further.

Residential properties are typically on a repayment mortgage, and interest-only mortgages are now less common. Instead, they are more commonly attached to buy to let properties.

However, extending the term of an interest only mortgage on a buy to let property can also be difficult, as some lenders may not allow it while the property is occupied by a tenant. This makes it challenging to address the issue of paying back the lump sum.

In such cases, it may be a better option to remortgage your property and replace your interest-only mortgage with a repayment mortgage. This would allow you to pay back a combination of both capital and interest, making it easier to manage your mortgage repayments.

It is important to note that these are complex circumstances, and it is highly recommended that you speak to an expert member of our remortgage advice team before making any decisions. They can help you better understand your options and find the best solution for your individual circumstances.

What if I want to reduce my term instead?

A viable option to consider during the remortgage process is to reduce the term of your mortgage. This option can be applied to almost all mortgage situations and is opposite to extending the term.

Reducing the term would allow you to pay back less overall, but this would also result in higher monthly mortgage payments. It’s important to note that this option may not be feasible for everyone, as larger monthly payments may not be affordable.

To make an informed decision, it’s recommended to seek remortgage advice in Leicester from a remortgage expert who can guide you through the process and provide insights on the best option for your financial situation.

Alternatives to Extending Your Term

If you’re looking to reduce your monthly outgoings, downsizing may be a viable option to consider, rather than extending your term through remortgaging.

This involves selling your current home and moving into a smaller property, which typically costs less, resulting in a smaller mortgage and lower monthly payments.

Another option to consider if you’re over 55 and own a property worth at least £70,000 is equity release. This enables you to release tax-free funds from your home through a lifetime mortgage, either in a lump sum or through occasional payments.

However, equity release may not always be the best option, and alternatives such as “RIOs” and “TIOs” – retirement interest-only mortgages and term interest-only mortgages – may be more suitable for over 50’s.

With a RIO or TIO, the loan is only repaid when you pass away or move into long-term care, and your home is sold. To navigate the complex landscape of later life mortgage options, it’s best to seek advice from a qualified, honest later life mortgage advisor.

They can help you understand the pros and cons of each option and advise on the most suitable path for your future plans and financial goals.

To understand the features and risks of equity release and lifetime mortgages, ask for a personalised illustration.

A lifetime mortgage may impact the value of your estate and it could affect your entitlement to current and future means tested benefits. The loan plus accrued interest will repayable upon death or moving into long term care.

A Guide to Remortgages in Leicester: Top Reasons to Consider

Remortgage Broker in Leicester

The mortgage journey can have both positives and negatives along the way, but by the end of it, you will end up with one of the following outcomes; you’ll have a dream home to possibly raise a family in, a stepping stone property to help you climb the property ladder, or you could have an investment property that you are able to rent out.

Regardless of the initial path that you took, eventually you will find that your mortgages’ fixed period is coming to an end. At this point you could possibly look to upsize or downsize into a newer home. Some landlords perhaps look to sell their portfolio or sell a home to the tenant.

We find, however, that a more popular option is for homeowners to remortgage their home instead.

What is a Remortgage?

First of all, let’s look at what defines a remortgage in Leicester. In short, a remortgage is where you use funds raised from a new mortgage, to pay off a mortgage you already have. There are a lot of different ways this can be done, each with their own benefits.

Making use of the over 20 years of knowledge that the “Moneyman” Malcolm Davidson (host of our YouTube channel MoneymanTV) has, we have put together a useful guide to all of the options that may be available to you when the time comes to remortgage.

Remortgage For Better Interest Rates

Your initial fixed period will typically last somewhere within the realm of 2-5 years and will generally have lower fixed rates or potential discounted rates. Depending on your case, you may even be placed on a tracker mortgage, which will follow along with the Bank of England’s base rate.

Once that initial fixed term ends, it is likely that you will be placed onto the lenders Standard Variable Rate (often shortened to SVR). Basically, an SVR is a mortgage with a potentially fluctuating interest rate that is dependant on what the lender themselves chooses to charge.

Whilst this does not follow the Bank of England’s base rate in the same way a tracker mortgage does, these fluctuations have been known to come about as and when there are any changes to the base rate or the market. For example, if the base rate increases, your lender may push their rate even higher.

Because of this, Standard Variable Rates tend to be pretty expensive options to take, which is why a lot of homeowners would much rather remortgage for better rates. The hope is that in doing so, you’ll be saving yourself some money on a monthly basis.

Remortgage For Home Improvements

Once you have gotten a few years into occupying your home, you may be looking for a change. Rather than move home to accommodate these changes, lots of homeowners instead look to remortgage to release equity, to cover the costs of these.

There’s lots of popular changes we hear of customers looking to achieve. Perhaps you’re in need of more space for your family or possessions. Maybe you’ve been looking to refurbish the kitchen. Some may look to convert their loft into a bedroom or a spare room into an office.

Though the idea of obtaining planning permission and managing your own project can seem intimidating, many who have done so would argue it’s a lot less stressful and a lot more rewarding than finding a new home altogether.

This may work out a lot better for the future too, as creating additional space and having good quality craftsmanship is something that is likely to increase the worth of your home. If you were to ever sell your home and move elsewhere, this would be very useful.

Remortgage for Changes to Your Term

Depending on your case, you may simply wish to remortgage in Leicester in order to access a better term. This can either be done by reducing the length of your mortgage term or by switching to a more flexible mortgage product.

Reducing the length of your term will mean that you aren’t paying back or restricted for as long, but it will most likely mean higher monthly mortgage payments for you. The longer your term is, the lower your monthly mortgage payments should be.

Some will choose for a more flexible mortgage term when the time comes to remortgage. Doing so may allow you to overpay, meaning you could pay your mortgage off quicker, as well as possibly having the option to carry the same mortgage and rates over to a different home, should you ever wish to move home.

Though this may sound like the ideal path to take, they are generally tracker mortgages, which as we touched upon before, will follow the Bank of England base rate. This makes your monthly payments a little unreliable, as depending on base rate changes, they could fluctuate in cost.

Remortgage to Release Equity

Unless a serious market crash were to occur, every homeowner will have some amount of equity in their property. Your amount is worked out as the difference between property value and your mortgage balance.

As mentioned before, people will generally remortgage to release equity as a means of funding home improvements, though there are other options for this also.

Some will use their released equity to cover long-term care costs, whereas others may use it as a boost to their income. Other popular options include to pay for a large holiday, to pay off an interest-only mortgage that is in your name or to free up some spending money.

Occasionally, we find that Buy-to-Let landlords will remortgage to release equity from a property in their portfolio, as a means of covering the deposit for a future property purchase.

Equity Release in Leicester is a possibility for those who are aged 55+ and own a home that is valued at least £70,000. Explore your options by getting in touch with an expert later life mortgage advisor who can provide further information and assist you through your process.

Remortgage to Consolidate Debt

Another reason why a homeowner may remortgage to release equity, is to pay off any unsecured debts that you may have unfortunately built up over time.

Though it seems straightforward in concept, gaining access to a debt consolidation remortgage not only bases the amount you are looking to borrow on how much you owe a creditor and what your property is worth, but also your credit rating. This means that you could have a limited borrowing capacity.

On top of this, in order to fully pay off your previous mortgage and the debts you have gathered, you will have to borrow more than the mortgage amount. This means you will most likely have higher mortgage payments per month.

Though this is not at all an ideal situation, you’ll at least find solace in knowing that should your financial state take a turn for the worse, there are options for you to explore.

If your credit rating ends up particularly damaged, it’s not completely the end of the road, though it will likely be very difficult and require specialist remortgage advice in Leicester before you are able to proceed. Even in taking that step, a mortgage is not guaranteed.

Homeowners should always take out specialist mortgage advice before beginning the process of consolidating and securing debts against their home.

Book Your Free Remortgage Review with a Mortgage Advisor in Leicester

If you are nearing the end of your primary fixed period and are considering your options for a remortgage in Leicester, we would love to speak with you. Book your free remortgage review with a trusted mortgage advisor in Leicester today. We have time slots available all throughout the week, from early until late.

One of our dedicated mortgage advisors will be able to discuss your case and any future plans you have, in order to create the most appropriate next steps for you to take on your mortgage journey. We aim to make sure that this process is quicker and smoother than when you first took out a mortgage!

Should I overpay my mortgage in Leicester

Mortgage Broker in Leicester

You could be a first time buyer in Leicester looking to get onto the property ladder, a home mover in Manchester or a homeowner at the end of your term, looking to remortgage for home improvements. In any of these cases, overpaying, even by a small amount, can be incredibly useful when it comes to the amount on the interest you pay back over your mortgage term. The earlier you begin to overpay on your mortgage, the better the effects it will have.

Some homeowners prefer not to do this, some cannot afford to. Quite often though, it will come down to life just getting in the way. Regardless of the circumstances, overpaying is definitely a good habit to get into when you take out a mortgage, but in reality, there’s always something else we’d rather buy, as opposed to making an extra payment on our monthly mortgage.

Put the Plan into Action

Part of the dilemma here is remembering to make those extra payments. It’s unlikely to cross your mind too often, except perhaps when your mortgage only has a few years left to run.

So, if you can see something of yourself in the above and would like to be making those extra payments so that, perhaps you can retire a year or two early, then what should you do?

It’s highly recommended setting up a standing order payable to your lender each month. Set up the standing order to go out on the same day as your regular mortgage payment. E.g. your mortgage payment is, say £500pm and is collected on the 1st of the month. You can afford to pay an extra £75pm, so set up a standing order for £75pm to go out of your bank also on the 1st

The reason for the above is that very quickly you will start to “feel” that your mortgage is £575pm and you will get used to that within a matter of months.

You are Still in Control

The big advantage of setting up a standing order to a direct debit, is you (the payer) are completely in control, unlike a direct debit where this is the receiver.

Therefore, if you find yourself a little tight with money for one month. You can easily log in to your online banking and pause the standing order so that it would cancel any future payments from going out until reactivated.

Up until the point of stopping the payments, at least you have benefited from the additional payments made until that point, and as mentioned above, this does not stop you from reactivating your standing order in the future when you are more financially comfortable.

Some mortgages will even let you make reduced payments or take a Mortgage Payment Holiday in Leicester if you have been overpaying for a while. Before choosing a payment break though it’s essential to check with your lender that you are eligible to do so to avoid a bad mark on your credit report.

Whether a first time buyer in Leicester or looking to remortgage in Leicester, overpaying your mortgage is a great habit to get into. You don’t need to go hell for leather at it unless you feel so obliged but even shaving a year or two off will be very welcome when you near the end of the term.

Remortgage Advice in Leicester

Reason To Seek Remortgage Advice in Leicester

Is your current mortgage deal approaching its end? Are you in need to borrow some extra money? If so, then it could be the appropriate time for you to Remortgage.

Many people, due to unfavourable economic situations, can find themselves in hot waters when it comes to making mortgage payments. If you are in the situation, you should ideally speak to your current lender and see if they have better alternatives to offer you. Remortgaging is perhaps one solution to the problem. However, the remortgaging process can sometimes be complicated and require Mortgage Advice in Leicester.

We frequently observe that customers leave searching for a new deal too late and end up falling straight to their existing lender’s standard variable rate. This is why you should always be aware of when your current deal is about to expire. Unquestionably, a lender’s rate will be a lot higher than your current rate thereby increasing your monthly payments by a significant number. So remember, there is nothing bad to think ahead and speak to remortgage advisor in Leicester.

Should I look elsewhere for a remortgage or stay with my lender? 

It is always the best approach to look around for other deals first before committing to an existing lender. Sticking with your existing lender may speed up the process, as you have an established relationship and they have your details on file, but there could be better deals with lower rates out there. So, go straight to the same lender just because you think it’s easier. Lenders never reward loyalty, they could offer better deals and rates to their new customers than to customers who have been with them for the past five years. 

On the contrary, many people look for online options where they can apply for remortgage online without speaking to an advisor or lender. Such a scenario is called an execution-only mortgage. Yes it can be easy to perform everything online, however, the consumer protection that an individual would have gotten by seeking advice will be no longer available. 

Lenders love their customers doing everything online as applicants often end up messing things up and picking out the wrong product, which can result in the borrower being on a higher rate than what they could’ve been on had they taken remortgage advice in Leicester earlier.

Remortgage Advice in Leicester for home improvements

Do you feel like your home is due to some upgrades and improvements? Home improvements or minor house upgrades are great ways to freshen up your home and increase your home value. 

Did you know that you could remortgage for home improvements? It can be a significant investment, as improvements such as extensions or loft conversions can add significant value to your property. People who are not even looking to increase their property value, because they have found their “dream home”, will also borrow for a home makeover. This could either be cosmetic alterations or some structural work. 

If you need to borrow a significant amount of money, your lender will reserve the right to ask you for estimates of the work you intend to carry out. You do not necessarily have to use the contractor that provided the estimate to do the actual work. 

Capital Raising Remortgage Advice in Leicester 

For any legal reason, you can raise capital on your property when you remortgage. This case is specific for large consumer purchases, gifts to help out family members, purchase a buy to let property, or for debt consolidation. 

Remember that you will be paying interest on a remortgage for an extensive period after you take one out so you need to ensure that you are borrowing for the right reasons and that you will be able to meet monthly payments during the whole mortgage term. 

Debt Consolidation Remortgage Advice in Leicester 

Most people associate remortgaging with securing a better interest rate for their monthly repayments or releasing funds for home improvements, but it is also possible to remortgage to consolidate debt. 

Adding unsecured debt to your mortgage may result in paying higher interest overall. It is because a mortgage term is usually much longer than the duration of a personal loan (this isn’t always the case). 

You will need to realise that you are acquiring an unsecured debt and securing your home. This will not fit in easily with everyone as you are lying under the risk of repossession if you failed to afford your mortgage payments down the line. 

You will need to notice that if you have 0% credit cards, the interest rates that apply to the debts that you are considering rolling onto your mortgage will start attracting interest ultimately. 

It’s important to know that you need to speak to a qualified mortgage advisor prior to securing any debts against your home.

Remortgage options

Before deciding to consolidate debts, you should consider all of your options beforehand. The best way to go about it is to seek remortgage advice in Leicester from a remortgage advisor. They will evaluate all of your options and then recommend you with the best route to go down. They might even recommend that you do not take a debt consolidation remortgage; it is the option that will benefit you the most. 

Often, when you consolidate debts into your mortgage it would lead to a reduction in your monthly outgoings. This would ultimately result in many customers reducing their payments by hundreds of pounds. 

Be vigilant enough to evaluate if this is the right option for you and then decide to speak to a Remortgage Advisor in Leicester today.  We are all up to assist you with all of your remortgage needs. 

Offset Mortgages in Leicester

Offset mortgages are by no means as accessible as they were in the 1990s. The demand has dropped because people aren’t as good at saving as they used to be. However, they are a fantastic option for customers who can put something aside each month. They are also ideal if you think you may receive a lump sum soon.

How does offset mortgage work?

In terms of how they work, when you take out an offset mortgage, the lender gives you a savings account at the same time. The savings account gets linked to your mortgage. While the savings account does not attract any interest, the money in their “offsets” against your mortgage balance. E.g. if you owe £100,000 on your mortgage and you have £18,000 in your savings account then you only pay interest on £82,000.

Pros and cons of offset mortgages

Offset mortgages are very flexible arrangements. You can put as much money in there as you wish until the mortgage is completely “offset”. Any money you put in there is instantly accessible, so it’s an ideal place for your “rainy day” emergency fund.

Because the savings account saves interest on your mortgage rather than attracting attention, there is no tax to pay on anything you put in there. In any case, this is particularly attractive to higher-rate taxpayers – they love offsets!

In terms of negative factors, you do pay for a few of these flexible features. Offset mortgages tend to have slightly higher interest rates and fees than other mortgages. Therefore, if you are not going to use the adjustable features, you’ll be better off with a more standard mortgage.

Putting down a deposit

If you are due a lump sum for some reason such as a possible future inheritance, then an offset saver can be an excellent place to deposit the money until you decide what to do with it. The same applies if you get annual or quarterly bonuses in your job that you are not relying upon.

Consumers who like offset mortgages tend to stick with them and are less likely to remortgage in Leicester to another type of deal. They can be hard to get your head around so you should consider all options available when you speak to a mortgage advisor in Leicester. Your advisor will be able to show you the impact of how an offset mortgage can save you money over the course of the full term.

Overpaying your offset mortgage

Many people plan to overpay their mortgages when they first take them out but never actually get around to it. Sometimes this is because they are nervous about paying too much off their mortgage, leaving behind little for future capital requirements. Again, offsets are an excellent solution for this type of borrower as you can drawback your money at any time, but every day that your cash is in the savings account it’s working for you.

Remortgage for a Home Office in Leicester

Remortgage Advice in Leicester for Home Improvements

Remortgage For A Home Office | MoneymanTV

During the lockdown, more people have had to adapt to working from home. Some manage to cope better than others, weighing the pros and cons. Some are turning their kitchen, living room, or even a bedroom into a temporary home office during lockdown.

A vast majority were already working from home. Some businesses would instead their employees work from the comfort of their home. Instead of going back and forth to the office, saving you a lot on travel expenses, saving you much money.

Why remortgage for a home office?

Interest rates at the moment are extremely low, and these are the lowest interest rates we’ve seen for mortgages for a long time. It’s the perfect time to borrow money. Remortgaging in Leicester for home improvements to make a home office can help make a huge difference, such as:

The Cost of an extension for a home office

Especially now that we live in a technological age, consider getting a Remortgage in Leicester for additional funds for home improvements. To convert a room or perhaps a garage to a home office.

Assuming an interest rate of 2% is possible over 25 years it might cost you:

That’s probably not a lot more than you are paying right now and it can make sense for a lot of people to “improve not move”, especially when you consider the aggravation and cost of buying a new home.

Many factors will affect how much you will have to pay back per month and how much you can borrow overhaul. It is down to the specification of the home improvement, such as the size of the extension.

You will also need to consider that to remortgage, and you will have to go through another affordability assessment, even if you switch deal through the same lender.

Are you looking to remortgage for a home office?

As previously mentioned, the rates have never been lower, now is the best time to look for a remortgage deal to switch.

Your lender could likely extend the time frame of your remortgage process. Meaning your home improvement could start 6-9 months.

As Remortgage Advisor in Leicester. We have always recommended that you speak to a local Mortgage Broker in Leicester like us. We will search through thousands of remortgage deals and pick out the perfect one for you and your situation.

Our team understands that time is tight at the moment; having a team of friendly mortgage advisor in Leicester by your side could make the process simple. Saving you time and money.

We offer all our new or existing customers a free mortgage consultation. Contact us today to book your free remortgage consultation in Leicester & see how we can help you.

Remortgaging Advice for a Home Extension in Leicester

Remortgage for home improvements in Leicester

If your home is feeling a little bit cramped, or maybe you fancy some home improvements?

Rather than going through the expenses and stress of purchasing another property. Now is a perfect time to consider Remortgaging in Leicester for some home improvements.

Some improvements, such as extensions or loft conversions, can put value on your home. Kitchens and bathrooms can look tired after a few years, and you can increase your mortgage to pay for cosmetic alterations as well as structural work.

Rates now are at their lowest rates ever in terms of fixed-rate mortgages out there in the market. Now is an excellent time to think about what you do to extend your property, especially considering long-term plans.

If the amount you need to borrow is significant, then the Lender will reserve the right to ask you for estimates for the work you intend to carry out. You do not necessarily have to use the Contractor that provided the view to do the actual jobs.

It’s not all about the value

Some people borrow for Home Improvements even if they know their home may not go up in value, and do this to help enhance their lifestyle, especially since more people now than ever are having to lock down and stay in their own homes.

If you have decided you are already in your “forever home,” and if you can afford it, there is nothing wrong with borrowing for this purpose at all.

Spending as little as a couple of hundred a month, you could borrow up to £50 thousand depending on specification, which is more than enough to have that kitchen or garden extension that you always dreamed of having.  

Adding onto what Malcolm mentioned in his video plenty of different extensions you can choose to add on to your property such as:

Sure adding an extension can be time-consuming, but make a huge impact on the long run and your lifestyle.

We have spoken to loads of customers who have taken our Remortgage advice in Leicester and have been happy with their results.

How can we help?

As an experienced mortgage broker in Leicester, holding years of valuable knowledge within a local mortgage environment, we aim to deliver that excellent service to every customer.

Along with the help of an expert mortgage advisor in Leicester, you could walk away with a superb remortgage deal. We offer all our customers a free remortgage consultation.

We understand the busy lifestyles of today. That is why our free remortgage consultations with your mortgage advisor in Leicester are available in the daytime, evenings, or weekends.

Unlike your Bank, we are able to search through 1000s of remortgage products to find you the best deal for your individual circumstances.

We really do love what we do here at Leicestermoneyman, and this really shows through our genuine customer reviews.

Contact us today to book your free remortgage consultation in Leicester & see how we can help you.

Remortgage Advisor & Remortgage Advice in Leicester

Trusted Mortgage Broker in Leicester

At some point in your life, your current mortgage deal will be coming to an end, or you’re in need to borrow some extra money?

Then you should consider to remortgage in Leicester, too many people make the same mistake leaving it far too late and ending up lapsing into their lender’s standard variable rate. If this has happened to you, chances are you are paying way more than you need to be doing on your mortgage payments each month.

Why Should I Shop Around for a Remortgage in Leicester?

Relying on your current Lender offering you a new deal, you will be missing out on potentially lower rates elsewhere. Lenders love it when customers don’t shop around! They do not reward loyalty as a rule. They even offer better deals to new customers than their existing borrowers.

If you switch online without speaking to someone, this is an Execution Only mortgage. That means you do not benefit from the consumer protection you would have gotten by taking advice. Again, Lenders love this because if it turns out, you received the wrong product, you have no grounds to complain since you picked it yourself.

I have always felt that customers should always seek advice when their remortgage is due.

Some customers are still on low-rate tracker deals that they have had for years and years. Even so, it’s always worth having a look to see what is out there, especially if you are concerned that interest rates might go up if you feel like that you can always take out a Fixed Rate Remortgage.

Remortgage Advice in Leicester for Home Improvements

If you feel your home would benefit from some upgrading, then it is possible to remortgage in Leicester for home improvements. Investing in your home can be an excellent investment.

Some improvements, such as extensions or loft conversions, can put value on your home. Kitchens and bathrooms can look tired after a few years, and you can increase your mortgage to pay for cosmetic alterations as well as structural work.

If the amount you need to borrow is significant, then the lender will reserve the right to ask you for estimates for the work you intend to carry out. You don’t necessarily have to use the contractor that provided the view to do the actual tasks.

Some people borrow for home improvements even if they know their home may not go up in value. If you have decided you are already in your “forever home,” and if you can afford it, there’s nothing wrong with borrowing for this purpose at all.

Capital Raising Remortgage Advice in Leicester

You can borrow extra funds for most legal purposes, examples of this would be:

You can raise capital on your property when you remortgage in Leicester for almost any legitimate reason. It could be for large consumer purchases, gifts to help family members, to purchase a Buy to Let property or for debt consolidation.

Remember, you will pay interest on a remortgage for many years usually, so it’s essential you borrow for the right reasons.

Debt Consolidation Remortgage Advice in Leicester

When you add unsecured debt to your mortgage, you may end up paying back more interest overall, and a mortgage term tends to be much longer than that of a personal loan (although it doesn’t have to be).

Are you taking unsecured debt and securing your home?

That doesn’t sit comfortably with everyone as you are at the risk of repossession if you cannot afford your mortgage in the future.

You will need to know the interest rates that apply to the debts that you are considering rolling into your mortgage. If you have 0% credit cards, then adding these to your mortgage will start attracting interest.

You should consider all options before deciding to consolidate debts, such as asking family members for assistance if possible and reducing as much non-essential expenditure as possible.

Once you have considered all the above and decided a debt consolidation remortgage could be right for you, then it’s vital you speak with a mortgage advisor in Leicester. Your advisor will take responsibility for the recommended remortgage and help you with your application.

Often, consolidating debts into your mortgage leads to a reduction in your monthly outgoing. Some customers end up reducing their payments by hundreds of pounds.

How Long to Fix Your Mortgage in Leicester

Mortgage Advice in Leicester

Generally, the longer you look to fix your mortgage the higher the interest rate is. Therefore, if you are looking for the lowest rate possible then it’s the short-term fixed rate you need.

The downside is your mortgage will be up for renewal quicker and when you come to remortgage your payments might increase. These days the majority of people actively search for and choose ‘Fixed-rate mortgage deals. 

Why Choose a Fixed Rate Mortgage

With a variable rate, your monthly repayments are subject to change when interest rates change. Many people worry about interest rate rises, particularly after such a long period of low rates.

Many people are certain of a rise in the near future. As such looking to a fixed-rate mortgage deal is beneficial as it offers the certainty of monthly outgoings,  with no sudden rise in the monthly mortgage repayment offering peace of mind that you will be able to afford the expected monthly mortgage repayment.

Medium-Term Fixed Rate Mortgage

If you don’t like the idea of sorting out a remortgage in Leicester so quickly then a medium-term fixed rate would be the way to go. Five-year fixed rates are popular and you have certainty that your monthly payments cannot increase in the foreseeable future.

There is a risk that interest rates might drop meaning you are paying more than you might have been had you fixed for a shorter period.

There are only a limited number of 7 and 10-year fixed rates mortgage deals on the market. These have always been the least popular. Customers tend to feel this is too long to fix as a lot can change in a decade.

However, a high proportion of homeowners say they would consider longer-term fixed mortgages. (These are the most expensive fixed mortgage products available)

Choose Your Mortgage Deal

When choosing your mortgage deal be mindful of booking and arrangement fees. A booking fee is payable up-front and an arrangement fee is payable on completion. Some people add fees to their mortgages, but this increases the total amount repayable as interest accumulates on the fee.

If you are taking out a small mortgage then it is more likely that you would want to take out a mortgage with no fees, even if a slightly higher rate of interest applies. The opposite applies if you are taking out a medium or large mortgage, your mortgage advisor in Leicester will help you with this tricky decision.

Choosing a mortgage requires consideration. There is no one mortgage product that suits everyone. Your selection will depend on your personal circumstances.

For example, if you think you may be moving in the next two or three years you may wish to choose a fixed deal for that period. (It is possible to ‘port a mortgage’ but you may be better off discussing this with your knowledgeable mortgage advisor in Leicester). If this is your final move, perhaps a longer-term fixed rate may be more suitable. & Leicestermoneyman are trading styles of UK Moneyman Limited, which is authorised and regulated by the Financial Conduct Authority.

UK Moneyman Limited is Registered in England, No. 6789312 | Registered Address: 10 Consort Court, Hull, HU9 1PU.

Authorised and Regulated by the Financial Conduct Authority.

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