Why Re-mortgage?
To simplify your finances – Research by the Council of Mortgage Lenders revealed that 14% of homeowners took out a remortgage with their lender due to previous history i.e. they have had a previous mortgage or another product with the lender. While it may often be more convenient to have all your finances in one place it is unlikely that you are getting the best possible deal.
You may be coming to the end of a discounted, capped or fixed rate deal with your current provider – such an event may mean your lender will automatically transfer you to its standard variable rate. In cases like this most lenders SVRs are not their best rates and it may be smarter and cheaper to remortgage with another lender. The Consumers Association estimates that a remortgage could save the average SVR mortgage holder up to £400 a year.
To release money – If you have been a homeowner for some years there is a fair chance you have built up an amount of equity. You could release this equity by remortgaging to allow you to make a large one-off purchase, such as a car or a luxury holiday, you may want to extend your home or make home improvements, or even pay for a wedding. A remortgage would make all these possible.
To shorten the term of your mortgage – Your income may have increased since you took out your current mortgage and you may decide that you could pay more towards it each month. You could do this by remortgaging and taking out a new plan with a shorter term or higher monthly repayments.
To change to a different type of mortgage – Sometimes we all just need a degree of flexibility. The majority of mortgages offer some of this but if you know you want to take a payment holiday it may be worth changing to a different plan to allow this where possible.
One Remortgage offers a variety of great value remortgage deals. So if you have found yourself in one of the above situations and are considering a remortgage, we can offer you the advice you are looking for. You will be sure to find a deal to suit you.