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. Below, we 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 a decision. We have lots of information on remortgaging to help you, including things you need to consider before remortgaging and the most frequently asked questions about remortgaging. We recommend that you read through it all carefully to help you decide whether remortgaging is the best decision for you.

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 many cases, a remortgage is simply about changing to a mortgage that is more suitable for your current circumstances. Since arranging your current mortgage, 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 simply be that you feel you can now afford higher mortgage repayments and you wish to overpay in order to repay your mortgage quicker.

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

A remortgage can 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.

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.