Help to buy remortgage services
If you need help to buy remortgage, there’s something call ‘porting’ which I will explain. Say you have a property with a fixed mortgage with, say for example, Royal Bank of Scotland. Porting is where you can take your existing mortgage and remortgage with same lender for the new property without paying any penalty. So that’s a great option for you to get into a larger house or to change your home.
Can I remortgage my current home to buy another property?
The short answer is ‘yes’. Purchasing a second home is seen by many people as a sound way to invest their money in the long term. Despite the extra fees and taxes imposed by the government on those buying second properties – either for another residence or as a buy-to-let property, it can represent a reliable investment.
How does remortgaging work?
As house prices rise and you begin to pay down your mortgage, so your equity increases. This provides an investment opportunity for you. By releasing some of this equity you can remortgage to put funds either towards home improvements or buying another property.
There are several benefits to doing this. If you live in a stable property market and are interested in buying a rental property, it may make sense to use the equity in your primary home towards the down payment on an investment property.
Can I get a second mortgage to buy another house?
How easy are UK residential remortgages? And when can you remortgage? Remortgaging your current home can free up some of the value within it to deliver a cash lump sum. This can be a very effective way of obtaining finance for the advance payment on another house or apartment. So if you’re planning to buy another house or flat then it is quite possible to apply for a second mortgage.
You can have two mortgages running at the same time as long as you can afford to repay the monthly instalments on each of them. Additional borrowing will entail higher monthly financial commitments. The lender will want to be sure you can afford the higher remortgage payments out of your income alone. If you fail to pay the mortgage, you could lose your main home as well as the second one.
How much equity do I need to buy a second home?
To qualify to buy a second home with no deposit you need to have a minimum of 20% equity in your existing property, so ideally, owe under 80% of your existing property value.
Can I remortgage my house if I own it outright?
If you have no mortgage on your home (known as an unencumbered property), you own 100% of the equity. You are in a strong position to apply for a mortgage on your home but will need to make a case for the remortgage and you will need to meet the criteria for the new mortgage.
Can I remortgage my house to pay off debt?
You can take out a remortgage for debt consolidation (or a secured personal loan) to pay off your various debts. This will bring them together under one repayment plan with your mortgage provider, where the interest rate could be more favourable than with other lines of credit. By remortgaging your home, you can release the equity that’s resting in your property in a lump sum and use this to repay your other debts. It might reduce your monthly mortgage payment, freeing up money to repay your other debts. But do be careful, the total credit charges in the long term may be higher than your current short-term arrangements.
Can I remortgage my house to improve my home?
After a few years, you may reach a point where you would like to make improvements or alterations to your home. This might be anything from a complete redecoration through to new windows, re-roofing, a modernised kitchen or bathroom, loft conversion or an extension of one room or more to accommodate a larger family.
Whatever you might like to do, these home improvements will both improve the look and help add value to your property. Raising finance through remortgaging can be the most efficient, and often least-expensive, option to obtain the money for home improvement work.
Take independent, impartial advice
As a final thought, before committing to a remortgage, you must carefully consider all your options, and take time to plan how and when you will do it. The actions you take at this point will affect your financial situation for years to come, and you would be strongly advised to get guidance from an expert professional to ensure you are making the most suitable and effective decisions, at the right time.
At Masutes Group, you can speak with an expert advisor who will look into your full credit score and your circumstances, go through a full fact find and make sure that you’re ready. We are independent, fully FCA, SAP, London Institute of Finance banking and CMM qualified with specialist experience in remortgage services, working with exclusive clients. And we are of course happy to offer home appointments to discuss your requirements.