Re-mortgaging is something that every buyer should consider once or more during the mortgage term. The ultimate aim of re-mortgaging is to save you money. There may also be a significant change to your circumstances which will require that you consider a re-mortgage. Many people choose to re-mortgage every few years in order to take advantage of special rates that will make a difference. You may be paying more than you need to and therefore it is always good to review this.
At the outset, obtaining the advice of a Mortgage Advisor is of utmost important. We will help you research the market and to see whether your own lender or another lender is offering a better deal in order to obtain the most cost effective solution.
Apart from saving money, here are a few other reasons why you may consider re-mortgaging:
- In the case that your fixed term or preferential rate is about to expire. Once it has expired you will automatically be placed onto your lenders Standard Variable Rate (SVR) which will mean you will end up paying more than what you were paying. It is good to plan ahead so that you are able to switch to a better deal in time for when your current deal expires.
- Many change mortgage lenders in order to reduce their monthly payments
- Your property’s value has increased since you purchased it-consider re-mortgaging to pay for major outgoings
- You want a better rate on your existing mortgage
- You want to overpay on your mortgage and your current lender will not let you.
- You want to borrow more money
- To avoid moving home-you can use the money saved from a re-mortgage of your property to spend on extending, adapting and making home improvements on your home instead of moving.
- To consolidate your debts
- To switch to a mortgage that better suits your current circumstances i.e. you may want more flexibility or a shorter term.
Everyone will have their own specific reason or combination of reasons as to why they wish to re-mortgage. It is always advisable that you review your mortgage on a frequent basis in order to reap the advantages of a re-mortgage.