1
When is the best time to review my mortgage?
Most of the UK take fixed rates which gives them the stability in their monthly mortgage payments, when this comes close to ending they will end up on a rate which is called the standard variable rate which is much higher. The best time to review your mortgage is within the 6 months running up to your current deal expiring as most lenders will give 6 months on a new mortgage offer. It also gives plenty of time to review the market and make sure you are moving forward on the best deal.
2
What are the benefits to remortgaging?
It will save you money, if you did not review the mortgage and let it run it will be put on the SVR which is a higher rate of interest. The more the interest rate the less your paying of the money owed.
Doing this within the last 6 months allows your broker to review the current market but also if rates where to go down in this time they will switch your case around to make sure that you complete on the best rate.
3
My house has increased in value - will this help me get a better rate?
Yes, so lenders have a range of products and they price these based on risk. They use something called loan to value which your see abbreviated as LTV. The lower the LTV the lower the rate. So if your house has gone up in value as well as your mortgage decreasing due to making your monthly payments you may find you will fall into a better LTV bracket which will mean potentially a better rate of interest charged.
4
Can I keep my property and rent it out?
Yes! This is called a Let to buy mortgage. You can remortgage your property and raise funds for a deposit to buy on. You would then top up the purchase price on the new property with a new mortgage.
The risk of this is you will have two mortgage commitments but in theory your tenants in the previous property should be paying enough to cover the mortgage payments as well putting some change in your pocket.