Remortgaging is when you switch from your current mortgage deal to another, usually a different provider, giving you the opportunity to choose a different and potentially better deal than the one you signed up to when you first bought your home.
When you remortgage, the amount you repay is transferred to another mortgage policy, which might have a different interest rate, different monthly repayments and new terms.
People tend to remortgage when the fixed term on their current mortgage deal comes to an end. And if you don’t switch to another fixed-term deal, there’s a strong chance your lender will shuffle you over to their standard variable rate (SVR), and that often means paying up to double the interest rate that you were paying previously.
Main reasons for remortgaging:
- Reduce the monthly repayments with a mortgage offering a better rate.
- Switch from a variable rate to a fixed rate mortgage.
- To increase monthly repayments and pay off their mortgage faster.
- You could potentially add other debts (CONSOLIDATE) to your mortgage, such as for home improvements
Remortgaging can be a useful solution for some property owners. However, like all other financial products, there are some things that you should always consider before making the move:
- Do you really need to change, are you actually going to be better off,
- What type of remortgaging deal you’ll need,
- Penalties, hidden fees and additional costs AND
- Whether you’ll qualify for a remortgage
To find out more about remortgaging, call the mortgage team at Asset Harbour on 01276 986333 today.