Remortgaging your property can help to save you money and give you peace of mind. If you’re currently considering re-arranging your loan, here are a few more reasons why getting a new mortgage could be a great idea.
1. Your current deal is about to end
This is one of the most common reasons for remortgaging. If your current two, five, or ten-year fixed rate deal is about to end, arranging a new deal will help you to secure a good rate of interest and help you to keep control of your finances.
2. You want a better rate
If you’ve been moved onto your lender’s standard variable rate, you may well find that remortgaging could help you to save money on your monthly repayments.
3. Interest rates are going up
Interest rates have already gone up once and many predict they’ll rise again in the coming months. Remortgaging now could help you to lock in a good rate and protect your future finances.
4. The value of your home has gone up
As @MoneySavingExp says, “If the value of the property has risen rapidly since you took out your mortgage, you may find you’re in a lower loan-to-value band, and therefore eligible for much lower rates.” Talk to your lender to see if you could save.
5. Overpaying on your mortgage
If you’ve recently inherited some money, made a profit on another property sale or got a pay rise, you may well want to overpay on your current mortgage. If your lender won’t allow you to overpay, remortgaging could give you the financial freedom you’re after.
6. You want to change your type of mortgage
A lot of people chose to remortgage because they want to move from an interest only to a repayment mortgage. Some banks will simply allow you to swap your mortgage over so talk to your lender to see if you can change the terms of your loan without remortgaging.
7. Borrow money for home improvements
Remortgaging is a good way to raise funds if you want to carry out major improvement works on your home. The money you release can be used to pay for renovations, an extension or for complete remodelling.
8. Releasing equity
Alternatively, you can release equity from your property to pay for other major purchases. If you want to buy a second home or help your child to get onto the property ladder, remortgaging could be the perfect way to do it.
9. Changing your lender
If you don’t feel that your current lender provides a good level of customer service, remortgaging is the perfect opportunity to change lenders and improve your experience.
10. Giving yourself peace of mind
Securing a two, five, or ten-year fixed rate is a good way to give yourself peace of mind. Knowing exactly how much you’re going to pay every month can take the pressure off of your finances and help to make your home more affordable.
Get in touch with one of our expert advisors to ensure you get a great deal when remortgaging your property.
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Written by: Andrew Page