Traditionally, it was uncommon to see people remortgaging and switching to other providers. This practice only became popular over the last decade or so with people taking the opportunity to switch and secure better rates for themselves rather than sticking with the provider they started with. Comparison websites had a hand in the change too because they let people easily compare rates and see how much switching could save them.
Nowadays people can change providers at almost any time. This offers potentially great benefits because they can take advantage of introductory offers from providers and find the best rate each time. As a result of this, remortgaging is much easier nowadays than it was in the past.
A big advantage of refinancing is that you can reduce the risk of inflation rises and higher fees. Many lenders will offer fixed rates for the first few years of mortgages (typically between 2 – 5 years). After this period it will usually change to a flexible rate meaning your costs can rise or fall. This increases the risk substantially. Instead of accepting the new rate you can choose to remortgage and fix it again.
You can remortgage all kinds of properties, whether they are commercial or domestic. There are even specialist providers that cater for hotels and guest houses. Whatever kind of property it is you need to take care when remortgaging to make sure you secure the right rate and clearly understand all of the costs you will have to pay. If there are early repayment fees you need to factor this into your decision.
At Stewart Hindley & Partners LLP we have a wealth of experience in a number of niche sectors. One of the main cornerstones of our business is guest house and bed and breakfast finance, and we help all kinds of business owners and entrepreneurs to find the right funding for their plans. There are a select few providers that specialise in the sector and it is our aim to put clients in touch with them. As brokers it is our aim to help you find the right lender and get the very best deal for your bed and breakfast finance, obtaining the funding you require.