Recent research conducted by data insight firm CACI shows that around £39 billion worth of mortgage deals are expected to have matured in January alone, with many predicting 2022 to be the year of the remortgage. With energy bills set to rise again, and the recent Bank of England base rate increase, now could be a sensible time to check your product is working for you.
Remortgaging is when you pay off your existing mortgage and switch to another lender. A standard remortgage can be completed simply, and you don't have to move house to remortgage. You can find out more about remortgaging in our comprehensive guide.
Although the main reason to remortgage is often to save those all-important pennies, it’s certainly not the only reason why it can be a shrewd move. Why else might remortgaging be right for you?
Your current mortgage may not allow you to make overpayments. If you feel this would be useful, remortgaging to a more flexible product can be a big advantage.
When you took out your mortgage you may recently have become self-employed, had a poor credit score, or perhaps used the government’s self-employment income support scheme (SEISS) during lockdown and found that it affected the terms available to you. Your current lender might not be willing to offer you a new product or term extension. If your financial circumstances have improved since you took out your mortgage, remortgaging could land you a product with better terms or lower monthly payments.
If your property has increased in value, or your mortgage has decreased, you can release some of the equity by remortgaging, which you could use to make home improvements such as a loft conversion or extension.
Switching to a different rate
If you currently have a variable rate product and are looking for the security that a fixed rate could provide, remortgaging to a new product is something to consider. On the other hand, you may currently have a fixed rate product and are keen to see whether moving to a variable rate could save you money.
At Newbury Building Society, we pride ourselves on providing a tailored service to fit your unique circumstances. If you'd like to discuss your options with qualified mortgage adviser, visit our online appointment booking page.
YOUR MORTGAGE IS SECURED ON YOUR HOME. THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.