Remortgage today and take advantage of new rates!

Why should I remortgage?

In today’s competitive market, many borrowers choose to remortgage (switch their current mortgage for a new deal, either with their existing lender or a new lender) every few years in order to take advantage of the new rates and products on offer or to fit changing life circumstances.

Remortgaging can help you…

Save Money

Remaining on the same deal for the full term of your loan could see you losing out on the opportunity to reduce the total amount paid back, in some cases leading to significant savings.

Avoid moving home

It can be cheaper and more convenient to adapt or add an extension to your existing home, paid for by remortgaging or a further advance, than to move home.

Suit changing circumstances

If your financial situation has changed and you now need a mortgage that can accommodate, for example, higher overpayments or a lower monthly rate, remortgaging can get you a deal that better fits your lifestyle.

Raise money

Higher income or a rise in your property’s value means you could increase your mortgage to help pay for major outgoings such as a wedding or your child’s university costs, rather than borrowing separately, and in some cases more expensively, from other sources.

Consolidate your debts

Remortgaging can allow you to release some of the equity you hold in your home and consolidate other debts, such as a car loan or credit cards, which can attract higher rates of interest than that of your mortgage. While this could reduce monthly payments, it may mean you pay more over the long term, so should be carefully considered and professional financial advice sought.

But it’s not always easy to do so if…

You need a very small loan

Many lenders accept remortgage applications only if the loan required is above a minimum level of about £25,000. Fees may also be a problem with very small remortgage loans, as these may outweigh the small saving on offer.

You need to borrow a high percentage of your property’s value

In general, putting in a bigger down payment will give you access to better rates. If you own less than 5-10% of your property, you may find it difficult to access the more competitive rates.

You have high Early Repayment Charges

If you have recently taken out a fixed rate mortgage or a discount mortgage you may find that early repayment charges make it very expensive for you to take your loan elsewhere in its first few years. In some cases these charges can outweigh the savings you’ll get from switching to the new mortgage.

You’ve recently become self-employed

Lenders need to feel sure you will be able to repay the loan you take on, so they need to know your likely future income. If you have recently changed your work status from employee to self-employed, but have not yet had time to build up a reasonable track record for your business, you may find it difficult to get a good remortgage deal.

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