Remortgage and Refinance
Remortgage to save money on your monthly mortgage payments or release capital. If you are considering moving your mortgage to a new lender either to secure a better rate or raise additional funds, our team of specialist mortgage advisers can help. Get in touch for independent advice on whether a remortgage is possible and the most suitable product for your circumstances.
You can lower your monthly payment
One of the benefits of remortgaging is that you may be able to secure a better deal, resulting in a reduced monthly payment. By researching the market or seeking the help of kredi, you could find a product with a lower interest rate.
You can take control and have certainty
If you choose to fix your mortgage rate by remortgaging, you can have certainty that your payments will stay the same for an agreed period of time. This can come in handy if you are coming to the end of your initial fixed rate on your current deal.
You may be able to consolidate
If you have short-term debt, it may be possible to release funds by remortgaging, which can be used to pay them off and consolidate your repayment into one monthly amount. However, bear in mind that doing so may mean that you will end up paying more total interest over the course of your mortgage term when compared to what you’d pay on the short-term debt.
You may be able to pay off your mortgage sooner
If you’ve had a positive change in financial circumstances since you first took out your mortgage, such as coming into a lump sum or getting a pay rise, then you may want to put more money towards your mortgage to pay it off sooner.
Remortgage
Remortgage your property
What is a remortgage
A remortgage is essentially a new or additional loan that you take out on your existing property without selling it. Often used at the end of a current mortgage deal in order to save money on monthly repayments by securing a new deal with a lower interest rate. However, a remortgage can also be used to raise additional funds secured against your property as a very cost effective form of lending.
Typical uses of the additional funds released from a remortgage include:
• Making improvements to your home
• Debt consolidation
• Financing a large one off purchase such as a wedding
• Raising a deposit to purchase an additional property
Whatever the reason, at kredi, we can help to assess whether a remortgage is the right option for your individual circumstances. There are a number of different ways that additional funds can be raised against your
home including; a further advance from your existing lender, an unsecured loan or a second charge mortgage.
Our mission is to help you to determine which is the best option for you and then source a lender and product to meet your needs.
What makes kredi Different
Our clients are always telling us that we are more than just a mortgage broker. Find out what makes us different and why they keep coming back time after time.
Our Approach
We believe that our client centric approach, which is underpinned by our core values of trust, transparency, integrity, teamwork and service, is designed to build long-term relationships with our clients.
It is what makes us stand out from the crowd and that is why our clients give us such great feedback, come back time after time and ask us to help their friends and family.
Our guarantees
We believe our advice and service is world-class. So much so, that we offer not one but two unique guarantees to you!
We want you to have complete trust and confidence in not only getting a mortgage but also receiving the very best service and so we offer our 100% mortgage guarantee and an unconditional service guarantee. You will never be out of pocket by working with us and we stand or fall by our word!
Market wide expertise
Our mission is to ensure that all of our clients never pay more than they need to on their mortgage. As whole of market mortgage advisers we have access to over 250 lenders and thousands of different mortgage deals. This means we can find you the very best rate for your individual circumstances, saving you time and money. We work on your behalf, not the lenders.
Things to consider about remortgaging
Whilst circumstances are going to differ from person to person, and it pays to discuss things with a mortgage adviser, there are some general things to consider before applying for a remortgage:
• If your current lender has locked you in with substantial early repayment charges or
exit fees, these may outweigh the savings made when remortgaging and a second-charge
loan may be more effective. Talk to us about this so we can weigh up the costs and benefits
with you.
• Your financial circumstances may have changed during the period since you took
out your original mortgage and you may no longer be able to obtain the level of borrowing
you require.
• There may be additional fees and charges that you will need to pay in relation to
arranging a remortgage.
• Your current mortgage, might have additional benefits that you need to consider
such as the ability to make flexible payments or take payment holidays.
Second Charge Lending
Second charge lending deals
A second charge loan is an additional, secured loan that you can take out in addition to your main mortgage to raise further funds. The loan is taken out against your property and is often used as an alternative to remortgaging. The loan is repaid in monthly repayments dependent on your lenders mortgage rates – just like your main mortgage.
Second charge lending – things to consider
Whilst your circumstances are different to others, with any big financial decision, there are some general things to consider when applying to take out a second charge loan against your property:
• You will be paying back two separate amounts every month, your main mortgage
and your new loan;
• A second charge mortgage is generally offered at lower interest rates than those
offered by other non-secured loan providers.
• Second charge lenders are often more flexible and bespoke in comparison to high
street loan providers, meaning that they will provide loans in situations where some standard
lenders won’t. In addition to this, second charge mortgages tend to be approved quicker
than standard mortgages.
An alternative to remortgaging
Second charge lending has become a popular alternative to remortgaging for homeowners and there are many scenarios where second charge loans may be more beneficial to you:
• If your mortgage is fixed or discounted and has a high early repayment charge,
taking out a second loan may well work out cheaper than remortgaging your entire loan
where you would have to pay the penalty.
• If your credit rating has fallen since you first secured your mortgage, the interest
rate you are offered when seeking a remortgage is likely to rise or you may be declined
facilities.
• Taking out a new, separate loan does not affect your current mortgage rate,
meaning if your current rate is attractive there is no risk of losing this rate as you might when
remortgaging.
• A separate second charge loan can be taken out over a different loan term to your
main mortgage allowing you to budget effectively.
Making it easier to borrow more money without affecting your current mortgage
If you are considering taking out a second loan against your property to raise additional funds, our team of expert mortgage advisers can help. Get in touch with us for independent advice on the best course of action for your situation, based on your individual circumstances. Just give us a call on 0207 112 8896 or fill out a contact form and let us do the rest, we guarantee to respond to all emails within 24 hours.
Flexible/Offset Mortgages
Flexible/Offset Mortgages
At kredi, we know that it’s important to keep control over your income and outgoings and with your mortgage likely being one of your biggest debts, if you want a mortgage that offers some flexibility – an offset or flexible mortgage might be the right choice for you.
With an increasing number of flexibility and offset options now available for mortgages on the market, we can work with you to ensure we find the best option for your circumstances.
How does a flexible mortgage work?
Flexible mortgages work in the same way as a standard mortgage, however, there’s a number of additional options that you may be able to take advantage of to make it easier to manage your mortgage. Typically, with a flexible mortgage you will be able to:
• Make overpayments – ideal if you want to overpay a bit extra each month, or a
lump sum, this, will in turn, reduce your interest charges and help you pay off the mortgage
sooner.
• Some lenders will also let you borrow back any money that is overpaid.
• Make underpayments.
• Take payment holidays if you are experiencing financial problems.
How does an offset mortgage work?
• An offset mortgage links your current and savings account balances to your
mortgage in order to reduce the mortgage balance, many homeowners use offset mortgages
to either reduce their monthly payments or to reduce their mortgage term.
• By linking your savings or current account to your mortgage, your savings balance
will be deducted from your mortgage balance, and you will only pay mortgage interest on the
remainder of the mortgage balance. Your savings stored in your linked account can still be
accessed at any point.
Example: Your remaining mortgage balance is £150,000 and you have £25,000 in a current
or savings account – by linking your account with your mortgage, you will only be charged
mortgage interest on the remainder of the mortgage balance (£125,000).
Things to consider
As with any mortgage, there are a number of considerations to take into account before
choosing to go forward:
• Flexible mortgages often have higher standard interest rates than other mortgages.
• Taking a holiday or making an underpayment will result in paying more overall – you
should only take advantage of these features if you really need to.
• Mortgage interest rates are generally higher than interest rates on savings
accounts, therefore, offsetting your savings balance towards your mortgage can mean your
money is working harder.
• Savings balances linked with your offset mortgage will not earn any interest.
Making it easier to control your mortgage
If you are considering a flexible or offset mortgage our team of expert mortgage advisers can help. From initial enquiry to moving day, we’ll be there to assist you and make recommendations based on your individual circumstances, and we’ll offer you mortgage options best suited to you. Just give us a call on 0207 112 8896 or get in touch here and we’ll get back to you in 24 hours.