If you have a property or a mortgage already, there are so many possibilities when it comes to remortgaging, some of which could save you a lot of money!
Here are some of the main reasons why you could remortgage:
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Your current deal is about to end - If your mortgage was on a fixed-rate term that’s now come to an end, you will now be paying your lender’s standard variable rate, which is typically higher. Remortgaging will allow you to find the best deal and potentially save you a lot of money on interest.
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You want to consolidate some debt - Borrowing against your property to pay off debts you have can be a good option for some, particularly if the interest rates on a mortgage loan are going to be lower than on the debts you’re repaying. This is very dependent on your circumstances so it’s advisable to weigh up all options.
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You’d like to do some home improvements - Remortgaging could allow you to draw out equity or borrow more money against your property to put towards home improvements. Having your dream kitchen or a landscaped garden might be as unattainable as you think!
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You want to invest in more property - If you have built up equity in your home or the value has increased, remortgaging might help you to raise a deposit for a second property, perhaps to let out or to have a second home.
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You want to shorten your mortgage term - Has your income increased? Or does your current deal not allow you to make overpayments? A new mortgage deal may give you more flexibility to pay more, thus reducing your overall term.
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You want to gift your family some money - You’d like to help your children to purchase a property of their own, or maybe even put money towards their wedding day. Using the equity you have in your property could help you to achieve this!
These are just a handful of the possibilities when it comes to remortgaging!
It’s important to remember that if you are in a fixed-rate deal, there will likely be an early repayment charge if you want to remortgage before your current term is up. Make sure you know what that charge will be, and speak to an adviser to explore your options!
