A question that we are regularly asked by clients is “should I be looking to remortgage?” To assist in answering this question we have come up with a number of points to consider:
- Remortgaging your property is an excellent time and method to review your overall finances.
- Lenders often have more attractive offerings for new clients than those already with them thus saving you money.
- Remortgaging often saves money monthly and is nearly always cheaper than moving onto a Lenders standard variable rate.
- At the point of a remortgaging you can choose a whole new product whether it a be a short-term fixed rate, a long- term fixed rate or something else. Circumstances and requirements often change over the lifetime of a mortgage and a regular review is time well spent.
- You may want to reduce your mortgage term and increase your monthly payments to pay off the mortgage more quickly. This can save you thousands of pounds in long term interest payments.
- Short term borrowing such as credit card debt and personal loans may have accrued over time and those monthly commitments are becoming a burden. It may be prudent to use some of the equity from your home to settle this unsecured debt and reduce your monthly outgoings.
- Many people want to invest into their property by way of refurbishment, extension, conversion, or remodelling. It is often possible to release some of the equity in your property to assist with this work whilst adding value back into your home. This is often an alternative to moving.
- Historically speaking mortgage rates in the UK remain at a low level and there are certainly good value products to be obtained.
- Most remortgage options come with both a free valuation and free legal work (no change of ownership) so the cost of remortgaging is less than when the property was first bought.
If you feel any of the points raised apply to you, then speak with one of our Specialist Contractor Mortgage Brokers today.