Your mortgage is a big financial and emotional commitment; that’s why it’s important to review your mortgage regularly, and ensure the product you have still works for your circumstances. You might find that a remortgage is the most suitable course of action, to save money or release equity.
Here’s just a few reasons why you might be considering a remortgage.
Your Mortgage Product Has Ended, Or Is About To
When you first take out a mortgage, there is often a specified period of time at the beginning of the term where you receive a particular rate (for example, a fixed rate mortgage). After this period, you’ll move to the lender’s standard variable rate (SVR) for the remaining duration of the mortgage term. The SVR is usually higher than the initial deal.
If you took a fixed rate, tracker or discounted mortgage, and that deal is about to end or already has, it’s time to review to see what your options are and find out if a different mortgage product could save you money.
You Want To Borrow More Money
If you want to make some home improvements, or thinking of consolidating other debts, you may be considering increasing your mortgage borrowing. There are lots of things to take into account when deciding if increasing your mortgage is right for you; as well as monthly outgoings, think about fees and overall costs in comparison to other lending options.
A remortgage could provide the solution you are looking for, even if your existing lender has declined any further borrowing, or you’re looking for a better deal.
You’re Not Currently On A Fixed Deal, And You’re Losing Sleep Over Potential Interest Rate Rises
If you’re concerned that increasing rates may mean your mortgage payment will increase, having a look at your options could put your mind at rest. An increase in rates isn’t easy to predict, and a potential fluctuation in what is likely your largest financial commitment might feel unsettling.
Considering a remortgage might mean you have more options to find a product that works better for you, and your sleep pattern.
The Value Of Your Home Has Increased Significantly
If your property value has seen a big increase since you took out your mortgage, a remortgage might mean you now fall into a lower loan-to-value (LTV) bracket, and have options for more favourable rates.
You’ll need to discuss what type of mortgage product you currently have, as any early repayment charges will have an impact on potential savings, but reviewing your remortgage options to find out the impact of this increase in property value could be beneficial.
You Want Some Flexibility
Maybe you want more options to overpay, or perhaps you want to make use of your savings and offset them against your mortgage interest. Whatever you’re looking for, you may find it out there by considering a remortgage to another lender. There are so many mortgage products available on the market with a wide variety of features and functionality; keeping your options open with a remortgage may mean you find what you are looking for.
Having a mortgage that works for you and your circumstances is so important. Reviewing your mortgage regularly and considering your options helps ensure you are aware of your existing circumstances and when things may change. Your stress levels and your bank balance will thank you for it.
If you would like to speak to Dee about remortgaging, or reviewing your existing mortgage, you can contact us here: email@example.com