How we can help
(We only consider commercial and investment properties)
We can assist with Re-mortgages for raising capital for commercial purposes whether it is Buy to Lets or Property Development Projects. (We do not handle residential mortgages).
Rising interest rates is leading many landlords to refinance at the best possible deals and we have lenders who are still maintaining old rates or with very small increases. Our Re-mortgages can go up to 80 per cent LTV
The following topics are covered below
What is a remortgage?
A remortgage is when you swap your current mortgage for another one. You can remortgage with your current lender or choose a different one.
Reasons to Remortgage
1. To get a better mortgage rate
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2. Improvements to your Investment Property
If you are looking to carry out property improvements, then you could capital raise. You have two options to raise finance.
Borrow more money by way of a further advance:: It is sensible to first approach your current lender for a further advance if there is enough equity in the property. This saves cost and legal expenses. If you are on a fixed term, the current lender can still advance you money but it will be considered a separate loan to the fixed one.
Remortgage with another lender: Should the efforts to re-mortgage with the current lender fail, it is best to wait until the fixed term is over and if capital raise is your priority, it is better to opt for a second charge short term loan. to meet your objectives. If long term capital raise is required, there is no other option but to refinance and pay the early repayment fees but seek a very keen interest rate from the alternative lender.
3. Debt Consolidation
If you have short term loans or credit card debt across a number of providers, you could raise money by remortgaging, which would allow you to pay off these debts leaving you with one single lower monthly payment.
4. Change in circumstances
Life can bring many surprises which may be non intentional, such as loss of a job or a bad investment. This can lead to a decline in your credit rating. In this case, there are lenders who accommodate adverse information, albeit being at a higher interest rate. In this case, the refinance and implications needs to be discussed with the greatest of transparency.
5. Releasing equity for further investments
If you are planning to start a business or maybe want to buy a second property, remortgaging to release equity is one way of raising finance. Equity is the difference between the current value of the property and the outstanding mortgage. However, increasing your mortgage balance is likely to increase how much you pay each month and decrease the equity in your property.
How much does it cost to remortgage?
If you are remortgaging with a different lender, then the costs involved will be higher and will include some or all of the following:
1. Mortgage Broker Fee
Some mortgage brokers do charge between £150- £1,000. Accelerated finance is a fee-free broker and we get paid by the lender once the finance is complete. To understand our process, please follow this link
Charged by the new lender to carry out a valuation on your existing property and costs range from £200- £500 depending on the value of the property. Some lenders now offer free valuations up to a certain market value.
3. Arrangement Fee
A fee charged by the new lender to cover the cost of administering the mortgage and costs vary widely between lenders. In most cases, this fee can be added to the loan but it's important to know that interest will be charged on that fee which can mount up over the term of the mortgage
4. Legal Fees
This will include searches, transfer of ownership and all other legal paperwork with the fee paid for transferring the mortgage money between lenders these costs will average around £1,500
5. Redemption fee
Will be charged by your current lender if you leave your mortgage deal before the end of the term and the cost will depend on how much of the term remains.
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This article is intended to provide a general understanding of the topic. The contents should not be treated as advice.