Remortgaging your home is often seen as a risky manoeuvre, one that may result in you being worse off financially. However, in the right circumstances, remortgaging your home can provide thousands of benefits (literally) to you and your finances. It's simply about knowing what works and doesn't work for you.
What is a 'Remortgage'?
When somebody chooses to remortgage, it is when they take out a new mortgage on their current property. This can be to replace their current mortgage deal, most probably when it is about to end and the client wishes to secure a better deal for themselves. It is also when people choose to borrow money against their property.
Why Should You Remortgage Your Home?
1. You Need Flexibility of your Payments
We know that it's very rare for you to be in the same position now as you were when your first sought a mortgage. Whether you've switched jobs, gone back to university or started a family; then just like the rest of your lifestyle, your mortgage needs to change and work around you.
Remortgaging allows you the opportunity to find a new agreement that suits your current lifestyle and there are providers out there that give you that flexibility, whether that is in the form of payment holidays or over payments (a great option for those who want to pay off more of their mortgage when they have the money there).
Don't worry though, you won't need to search high and low for the right provider; just a few quick questions from us and we will scour the country in search of the right one for you.
2. You Want a Better Rate
From eating out to purchasing furniture for your new home, everyone wants to secure the best deals. No more so than when it comes to many years of financial commitment in the form of a mortgage.
It may seem strange that you would get a penalty for paying your mortgage off early, but unfortunately, it is a very common approach that lenders take. You see, they know that you probably don't enjoy having the financial burden dangling over your head for the significant future and if clients had the option to pay a significant proportion off early, they probably would.
By remortgaging, you can ensure that one of your main considerations is mortgage rates and ensuring that you get the best options available to you. It is worth discussing this with our mortgage advisors who can help to advise and direct you towards the best deal for you.
3. Your Current Mortgage Deal is Coming to an End
First Industry Secret - The lowest rate doesn't mean the cheapest mortgage. A low rate can look very attractive especially if it appears at the top of the list in a comparison search. The reality can be very different and once product fees and sometimes survey fees are added, the total cost can be higher than you think! Often there are better mortgage options available to you confirming the importance of speaking to a specialist adviser that can guide you through thousands of products in the market.
Second Industry Secret - Many mortgage providers will give you the best mortgage deal when you initially approach them, so for the first few years you are getting fantastic rates. After your initial mortgage deal ends, they are more than likely to drop you down to average-at-best rates. Why? Because they know that they have you in their grasp and they know that most people don't like the hassle of searching for a new provider.
Third Industry Secret - It's really not that difficult to change mortgage provider, especially when you have a team of mortgage advisors on your side, alleviating any stress and work from you.
Fourth Industry Secret - Our final secret that we will share with you is that the best time to look for a new mortgage is around three months before your mortgage deal ends! Now open up your diary and pencil that in, fail to prepare, prepare to fail!
4. You Want to Borrow More
Finally, one of the most common reasons for remortgaging is so that the client can borrow more money, although reasons vary with the client, the most common reason is to fund home renovations.
It is really important that you read through all the fees. It can be easy to become set on the idea of getting more money without actually understanding that you are borrowing it with interest. Make sure that you check over all the fees with a fine tooth comb, if it is going to cost thousands more in the long run, ask yourself whether it is worth doing.
