Why do people remortgage?
Remortgaging is where you take out a new mortgage on the property you own, it can replace your existing mortgage to reduce your payments or allow you to borrow money. However, It’s of course important you speak with a qualified adviser to see if this is right for you. With about a third of all home loans being remortgages we thought we would look at 3 of the most common reasons.
To get a better rate
Most people shop around for the best deal for shoes, cars, TV’s and almost everything else, but a surprising amount of people just stay with the same lender for years and assume they have a good deal! It’s always worth speaking with an impartial adviser that knows the market to see if you can reduce your monthly payment through a more competitive rate
For home improvements
This is often seen as a sensible option as it could raise your properties value. It could also be a better route than moving home when you have the right location but just need more space!
Your current deal is about to end
Many people have a fixed rate mortgage with a typical term of between 2-5 years and when this comes to an end you often fall onto your mortgage lender’s standard variable rate (SVR), which in many cases will see payments increase. However, you can actually look to secure a new rate with a new lender as far as 6 months before your current rate is due to end!.