There are many reasons you may want to remortgage. Some of these are listed below:
To get a better mortgage rate:
The current mortgage market is fairly competitive with all of the fixed term rates on offer that could help you decrease your monthly mortgage payments significantly.
When Remortgaging you can either stay with your current lender or switch to a new provider with a more competitive mortgage product.
If you’re looking to carry out some major home improvements, then you could borrow more money to pay for these by Remortgaging.
More Flexible mortgage terms
You may be in a position to make overpayments to your mortgage, or your income may be variable, so flexibility or payment holidays may help with budgeting.
If you have a short-term loans or credit 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.
There are a few issues when it comes to this:
– You will have to declare your current debts to the lender who may not see you as a good risk if there are signs of financial mismanagement on your part.
– You will be paying off this debt over a longer period and therefore by paying more interest in the long run
– Once you have cleared your short term loans or credit card debt there may be temptation to use this route again and result in further short term debt.
Change in circumstance
Your current mortgage was offered at a time when you may have had a lower income or bought the property solely by yourself. Perhaps you have paid of all of your short term debts regardless you could qualify for a lower interest fixed-rate mortgage or a more flexible one with advantageous terms.
Reduce the mortgage term
If you remortgage to a lower interest rate then it would make sense to shorten the term of your mortgage which would then lower the amount of interest you will pay over the period of the loan.
If you can afford to do so increasing your monthly payment by even a small amount could save you thousands of pounds in interest.
If you are planning to start a business or perhaps you want to buy another property, Remortgaging to release some equity tied up in your current property is one way of raising finance. Equity is the difference between the current value of your property and your outstanding mortgage and the greater this is the better when it comes to releasing equity.
Did any of these resonate with you? If so get in touch today to see how we can advise you. Call 01225 962 532.
*Please think carefully before securing further debts against your home*
*Your home may be repossessed if you do not keep up your mortgage repayments*
*You may have to pay an early repayment charge to your existing lender if you remortgage*