We often get asked: why should I remortgage?
There are many reasons why you may be thinking of remortgage. In this article, we’re going to share some of the most common reasons and how we can help you.
Your mortgage deal is coming to an end
The most common reason to remortgage is to avoid going on to your lender’s standard variable rate (SVR) when your current deal comes to an end. This is often higher than your current interest rate, which means you’ll end up paying more money each month than you need to.
You can start looking for better mortgage products six months before your mortgage deal ends.
Our advisers can help find the right mortgage deal for you, as well as discussing other options available.
Reduce your mortgage term
If you can get a lower monthly payment when remortgaging, you may want to consider keeping your mortgage payment the same as they have been, or maybe even increasing them if you can afford it. This could mean reducing the overall term on your mortgage and paying it off quicker, saving you interest, plus you become mortgage-free sooner!
Borrowing more money
Remortgaging your home can be a great way to make those home improvements you’ve been pondering over for so long. Whether it’s a dreamy, state-of-the-art kitchen or an extra room to make into a cosy home office. You might be able to use some equity you’ve built up to help fund these projects, and maybe add even more value to your home at the same time!
Your first step is to consider how much your renovation will cost. Our home renovation calculator can give you a quick quote, as well as telling you how much extra this may cost you each month.
You can also borrow additional money to fund things such as, a deposit to buy another house, or perhaps you’d like to gift money to your dependents. The lender will want to know what the additional money will be used for, and our advisers will be able to discuss all of this with you.
You need to bear in mind, if you’re still tied into your existing mortgage deal, that you may have to pay an early repayment charge to exit this early. But don’t worry, our expert team will be able to talk you through any charges that you may have to pay.
Lower monthly payments
When you remortgage, you may be able to get a lower interest rate than you’re currently paying, or would be paying if your mortgage went on to the SVR. And a lower interest rate could mean lower monthly payments.
Add or remove someone else from your mortgage
As part of a remortgage, you can also look at options around adding or removing someone else from the mortgage and property deeds as part of the application. There may be some additional legal costs involved with this and the lender will have to be happy accepting an application in the new names, but again, our advisers can talk you through this.
We can help you with all of the above scenarios, as well as any other mortgage-related questions you may have. If you’d like to get in touch with us to discuss your options, we’re always here to help.
You may have to pay an early repayment charge to your existing lender if you remortgage.