Why Remortgage to Newcastle Building Society?

There are many reasons why you may be considering remortgaging your home, but the most common reason for doing so is to take advantage of a better mortgage deal from a different lender. If you're thinking about remortgaging to Newcastle Building Society, below we'll look at some of the most frequent reasons for remortgaging and explain what you need to know in each case, so that you can make an informed decision about whether a remortgage is the most suitable option for you.

How does remortgaging work?

First things first, it's important to understand how the remortgage process works, and what you need to think about before making the decision. We have lots of information on remortgaging to us, as well as the things you need to consider before remortgaging, and we've answered some of the most frequently asked questions about remortgaging too - we recommend that you read through it all carefully to help you decide whether remortgaging is the best decision for you, as well as whether there may be a better option, such as switching mortgages with your existing lender.

If you decide that a remortgage is suitable for you, then you will need to make sure that you are happy with the rate and features of the remortgage deal that you choose, as well as that your circumstances fit the Loan to Value criteria.

Remortgaging to suit your changing needs

In your case, a remortgage may simply be about changing to a different mortgage that is more suitable for your current circumstances.

Your situation may have changed in that you require more flexibility - for example you may have got married or divorced, your family may have grown, you may have received a large inheritance or perhaps undergone a change in your employment. Or it could be that you feel you can now afford higher mortgage repayments and you wish to overpay in order to repay your mortgage quicker, or you may want to reduce or increase your mortgage term.

There are a wide range of mortgage deals at Newcastle Building Society to choose from, each with their own features and benefits, so you're sure to find the right one for you. Compare all of our mortgages now to see which one may best suit your needs before you speak to one of our mortgage advisers.

Remortgaging to save money

Many mortgages offer an introductory deal of a fixed, tracker or discounted rate for a specific period of time, which is usually between two and five years. The most common time to remortgage is when these deals to come to an end to avoid being moved onto the lender's Standard Variable Rate, which may be higher than other rates that are available.

You can often secure a better mortgage deal by remortgaging, which could save you money in the long term. However, please bear in mind that remortgaging isn't always a free process, so you will need to factor in any remortgage costs or fees involved when considering whether it is the right choice for you.

Remortgaging to borrow more money

You can save money by remortgaging to a better mortgage deal, but a remortgage can also help you to borrow more money against your home. You may be considering a remortgage for home improvements, or to make a large purchase such as a car. However, it's only possible to remortgage and borrow more if your home has increased in value since you took out your last mortgage, or you require less than the value of the property.

Every mortgage lender has different lending criteria for remortgages, as well as limits on how much you can borrow against your property. This is called the Loan to Value (LTV) and can be up to a maximum of 95% of the value of your home; for example, on a property with a value of £100,000, the mortgage would be £95,000 and a deposit of £5,000 would be required.

You must also remember that remortgaging to borrow more money will increase the size of your mortgage, but will not increase the value of your home.

Remortgaging to pay off debt

In some cases, remortgaging your home may be considered as a way of paying off existing debt. Please be aware that your home will be repossessed if you do not keep up repayments on your mortgage. If you are experiencing financial problems, we recommend that you speak to a professional adviser such as a solicitor or debt counsellor before you look to consolidate debt onto your mortgage - you can find helpful website links and telephone numbers, as well as further advice, on our payment difficulties advice page.

Talk to us about remortgaging now

If you feel that a remortgage to Newcastle Building Society is right for your circumstances, one of our qualified mortgage advisers would be pleased to discuss this with you. Call us now on on 0345 606 4488, or book an appointment at your local branch to speak to us.

Your mortgage will be secured on your home. Your home may be repossessed if you do not keep up repayments on your mortgage.