Remortgaging your home is a suggestion that – for some reason – gets turned down by many. Remortgaging can bring a spar of benefits to a homeowner which will be covered within this blog. To start off let’s understand what a remortgage is: A remortgage is the procedure of reimbursing one mortgage with the proceeds from a new mortgage using the same property as security.
Why remortgage?
The most common reason why property owners’ remortgage is that the initial rate that they confirmed when first buying the property has come to an end. This can be disappointing as these property owners have become accustomed to working their monthly budgets and spendings around this price. This is why a remortgage is good as it stops this from happening. Once you remortgage, you will be offered the chance to pay another initial rate.
Cheaper than a Standard Variable Rate Mortgage
As touched upon earlier, lenders only offer the initial rate for up to a certain number of years. After this you will be expected to pay an SVR rate which can be almost double the initial rate. By remortgaging your home you can on average save up to £4000 a year.
Free up your capital
Due to the continuous low payments that are on offer because of your remortgage, you should have more disposable income coming in monthly. When you cash in the form a larger loan it allows you to access additional equity from your house so you can pay for things such as home improvements.
Pay off your mortgage sooner
If you or your partner have come into money such as an inheritance; This could place you in pole position to overpay on your usual mortgage rate or if you are lucky enough – pay it off fully! Remortgaging gives you the opportunity to save thousands of pounds as you are avoiding early repayment charges and exit fees.
Before you mortgage
Make sure that before you decide to remortgage your property that you know what might occur. Remortgages can take up to three months to finalise once you decide to go ahead with it. There is the slight chance that once you apply for the remortgage that you may be rejected for a deal if your circumstances have changed. This could be changes such as a lower household income compared to before. When deciding to remortgage there are fees that you must be aware of that occur when switching mortgage deals.
Need More Advice?
If you’re worried about something that might stop you from getting a mortgage, why not get some extra advice? Our team of experienced mortgage advisors can offer you unbiased advice to help you get the mortgage that you deserve.
Don’t hesitate to get in touch with our team today. We can set up an appointment as soon as possible!
