There are a number of reasons that people look to remortgage.
Your mortgage is one of your most expensive outgoings and it makes sense to strive to achieve the best rate possible. This could potentially save you thousands of pounds over the life of your borrowing. Whether you are on your lender’s Standard Variable Rate (SVR) or if your current deal is coming to an end, please get in touch and I can carry out a free financial review to see how much money you could save. If you are better off staying where you are I will let you know.
Debt consolidation is one of the main reasons that people consider remortgaging. If you’re a homeowner and have multiple debts that you’re struggling to keep on top of, it can be tempting to acquire funds using your home as security, to clear these debts. However, you should always think very carefully before securing borrowing with property, as this will naturally be at risk if you fail to meet the repayments.
Think carefully before securing other debts against your home. Your home may be repossessed if you do not keep up repayments on your mortgage. You will potentially pay more interest by consolidating if the loan is increased and the term is extended.
Many people remortgage to gain funds to carry out home improvement work to their property. This is often seen as a sensible option, as any improvements you make to your home may well increase its value in the long term. Spending in this way is therefore an investment in your property, as you will likely see a return on it at some future date.
Many people, especially in today’s troublesome economic climate, find that they’re simply unable to keep up with their outgoings for whatever reason. Whether you’ve had a change in circumstances due to illness, a job loss or personal reasons, you can easily find yourself in a position where your mortgage payments are just not possible.
If this applies to you, you should ideally speak to your current lender to see if there are any alternative suggestions that they have. Remortgaging is just one of the options that may be available to you.
If you’re home has risen in value during the period of your mortgage, you may well want to see the benefit of this value through equity release. Remortgaging is one of the ways you can do this, as it can be built into the terms of the deal; however it basically amounts to further lending on your property, and should therefore not be entered into lightly.
The base rate is expected to increase over the next year which means interest rates will likely follow suit and become more expensive. Some interest rates have started to rise already.
This means that you could save more money on your monthly payments if you secure your mortgage now, rather than wait until rates rise.
Don’t miss out! Find out how much you could save.
Speak to me on 07931 745 156
You may need to pay an ERC to current lender if you re-mortgage.
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