why remortgage?
Firstly, just to clarify, remortgaging is when you take out a new mortgage to replace your existing mortgage.
More recently, mortgage rates have hit a record low which means remortgaging could potentially save you thousands in interest.
Take a look below at some of the reasons why you might want to remortgage…
My fixed term is ending - When your fixed term contract ends, your mortgage will revert to your lenders standard variable rate. This means you could be paying more than you need to. Sometimes people think that because their monthly repayment amount has increased that they are paying more off their mortgage. But don’t be mistaken, if you haven’t remortgaged or taken action to overpay on your mortgage, you’re most likely just paying more in interest. If your fixed term is coming to end, now is the time to review your mortgage.
My house has gone up in value - It’s no secret that the UK property market has experienced an economic boom. In fact, average prices across the UK are now set at £242,832, which is an increase of about £23,930 over the past twelve months. If your property’s value has increased, your equity will have increased too, lowering your loan to value. This means you could benefit from a better mortgage deal with lower interest rates.
I would like to borrow more - If you would like to make home improvements or have debt to clear, you could borrow more from your lender and release equity to obtain these funds. It’s important to note, remortgaging this way does mean you are increasing your loan.
I need more flexibility - Getting a mortgage is one of the biggest financial commitments you can make. If your life circumstances have changed and you require that bit of flexibility, you might want to remortgage and opt for a more flexible mortgage deal which allows you to make overpayments or take payment holidays without any penalties.
As you can see, remortgaging can be extremely effective. But before you make any hasty decisions, it’s important to obtain mortgage advice first so that you can be sure it is the right move for you. If you would like to have a chat about exploring this option, give us a call on 01633 987070
