There are many reasons to think about remortgaging. Not only could remortgaging reduce your monthly outgoings, it could alternatively help you pay off your mortgage more quickly in one of two ways. You could either reduce your monthly payment by remortgaging to a lower rate, freeing up cash to make overpayments, or alternatively increase your monthly payment and take your mortgage over a shorter term.
Because your circumstances are unlikely to stay the same throughout the term of your mortgage, the mortgage you originally took out may no longer be the most suitable one for you. Remortgaging could bring your mortgage deal in line with your current needs and circumstances, regular reviews could keep you with the most current and up to date mortgage.
There are a number of ways your circumstances may have changed, including getting married, starting a family or starting a new job. If any of these apply, you should speak to us about the potential rewards of remortgaging.
However, it isn’t only our circumstances that change; it is also the products available. If you remortgage, you may be able to take advantage of a deal that was not available when you originally purchased your property, products are being withdrawn on a daily basis and replaced with less advantageous ones as markets dictate. Don’t delay in talking to us.
Because there are always new products available, regularly reviewing your mortgage deal could result in significant savings by remortgaging to a different lender.
You may have to pay an early repayment charge to your existing lender if you remortgage. However, if you are concerned about whether you will have to pay an early repayment charge to your existing lender if you remortgage, speak to one of our mortgage experts as in some cases savings and other benefits are still possible where an early repayment charge applies.
Reducing your monthly mortgage payments
Most of our customers consider changing their lender at the end of the fixed/discounted term to take advantage of a better mortgage deal. Some lenders even offer to contribute to the costs and you may save more over time with a lower interest rate. It’s important to check what early repayment charges your current lender may make before moving your mortgage, although sometimes it can be worth switching to save money over the long term. When you take out a mortgage with us, we will be in touch 3-4 months before your current mortgage expires to arrange a review to advise you on your mortgage options.
Extending or improving your home can be a very cost effective option instead of moving home, with all the expense and upheaval that it can create. If you need to raise funds for an extension or other project, we can advise you on the best possible solution from either a secured loan, remortgage or further advance from your existing lender. We’ll also advise you on the costs involved in doing this and how we can help you save some money.
You may want to reduce your monthly outgoings by consolidating your debts into a single affordable monthly payment. If so, we can review your finances and make suitable recommendations in the form of a secured loan or further advance on your existing mortgage. When consolidating debt, a reduction in monthly payments is likely to mean an increase in the debt and overall term.