You may be able to save money on your contractor mortgage by remortgaging. Information about remortgages can be found on the ‘Remortgaging’ page of this site. By replacing your existing contractor mortgage with a new one, you may be able to get a lower interest rate, which would lower your monthly repayments. You can also extend the term if you require, or switch to a different repayment basis.
If you come into financial difficulty or require more disposable income each month, and you have a repayment mortgage where the capital and interest are repaid, you could switch to an interest only mortgage which would make your monthly repayments lower. Likewise, by extending the term, the monthly repayment will be lower because you are paying back your contractor mortgage over a longer period of time.
We can assist you with any contractor remortgage, whether it is to raise additional capital or to find a better interest rate to save you money. As an example, if you have a £100,000 contractor mortgage at 6% with 20 years to run on repayment (capital & interest), the monthly repayment would be £716.43. If you were to remortgage to a 5% interest rate with the same term and mortgage amount, your monthly repayments would drop to £659.96! Leaving more money in your pocket to do what you like with.
With the price of fuel, utilities and food climbing rapidly it is very important to save money where you can. We can help you to find excellent mortgage deals at competitive rates, as we have years of experience in contractor mortgages and we are able to help you through all of the paperwork in order for your remortgage to go through smoothly.
If you want to know just how much you might be able to save, you can use our remortgage savings calculator. All you need to do is enter the outstanding mortgage amount, the remaining term of the mortgage, the current interest rate and the new interest rate. The calculator will then confirm how much you will save every month. You will need to contact us first so that we can source a new mortgage for you, so that you will know what the new interest rate is likely to be so that you get a more accurate calculation.
Struggling to get to grips with mortgage related terms? Use our quick-reference guide to help you.