Why Remortgage?
Homeowners may consider remortgaging for a variety of reasons, such as securing a more competitive rate, gaining greater flexibility, borrowing additional funds, or paying off their mortgage sooner. Changes in personal circumstances, like divorce, consolidating debts or an increase in property value, can also make remortgaging a suitable option. It can help you review your mortgage choices and manage potential interest rate changes, but it’s important to carefully consider your individual circumstances.
What are Benefits of Remortgage?
A remortgage offers a myriad of advantages, which is why 1.2 million people take this route in the UK each year, according to the FCA. Let's take at some of the benefits available to anyone looking to remortgage their property.
Better Interest Rates
The mortgage market offers a wide range of interest rates, and moving to a new lender or securing a better deal could help lower your monthly mortgage payments. While switching may involve paying an early repayment charge (ERC) or exit fees to your current lender, these costs could be offset by the potential savings from a more favourable mortgage rate.
Improved Cash Flow
By extending the term and potentially reducing monthly payments, homeowners can enhance their cash flow, enabling them to allocate funds towards other investments or financial goals.
Access to Equity
Using a remortgage to consolidate debt is increasingly common. If you have multiple short-term loans or credit card balances with different lenders, you may be able to release funds through your mortgage to pay them off, leaving you with a single monthly payment.
Additional Perks
Switching to a new mortgage deal may offer added benefits such as lower fees, improved terms, or enhanced features.
Adaptability
People’s financial situations often change over time. For instance, you might receive a higher income and want to make extra payments on your mortgage, or you may prefer an interest-only or offset mortgage to access available funds. Remortgaging can provide the flexibility to move to a mortgage deal that better aligns with your current circumstances.
FAQs
Looking for Remortgage?
Our advisers have experience in mortgage finance and can help you explore a wide range of options from UK lenders. Get in touch today to discuss your mortgage needs and receive guidance tailored to your circumstances.