These days there’s more than one type of refinancing mortgage, indeed they have ceased to be a category in their own right. Before refinancing, you should decide what you’re actually trying to do.
Are you simply looking for a better rate of interest, which will result in lower monthly repayments? Are you looking to consolidate existing debts into a mortgage? Or maybe the equity in your house has risen sufficiently that you’d like to free up that value to spend on other things.
The answers to these questions will all affect the type of refinancing mortgage you eventually settle for. If you’re just looking for a better rate of interest, then a generic mortgage search through a financial adviser or a site like Moneyextra will help- but check carefully whether there are penalties payable for leaving your existing product.
If you’re looking for debt consolidation, see if your existing lender will allow you a further advance. Many of them do, and if your credit history with them is good, you’re likely to get a better deal than is possible with a new lender (after all, it’s another opportunity for them to get money from you!) If you really do want to move, before going to a non-status specialist (e.g. National Guarantee), see perhaps if a generic high-LTV mortgage or 100% mortgage (Sainsbury’s, Scottish Widows, NatWest, the Woolwich and many more) will cover your needs.
In terms of freeing up equity, again a higher-LTV product rather than a specialist refinancing mortgage is usually the answer; although if you can avoid borrowing over 90% of the value of the property, you can almost certainly broaden your options and save yourself cash. As an aside, some providers (Chorley & District, Nationwide) offer specialist equity-release programmes for the over-60’s. (These were mainly created to pay for nursing home care). These are a wholly different type of product but may be worth investigation.
