Are you torn between renovating your current home and moving to a new property? We've broken down the pros and cons for you.
Remortgaging is the process of getting a new mortgage on your existing home either with your current or new lender.
More often than not, the main reason to remortgage is to lower your monthly repayments and save yourself some money, but it’s not the only one.
You currently have a mortgage, but what are the reasons to switch to another provider?
- You could lower your monthly repayments.
- To switch to a fixed rate product - if you currently have a variable rate product and feel that interest rates will rise in the next few years, then remortgaging to a fixed rate product is something to consider.
- More payment flexibility - your current mortgage may not allow you to make overpayments or underpayments.
- If you feel this kind of flexibility would be useful then remortgaging to a more flexible product may be advantageous.
- Better mortgage terms - when you first took out your current mortgage you may recently become self-employed, or had a poor credit score leading to you being offered a more expensive product. If your financial circumstances have improved, remortgaging could get you a mortgage with lower monthly payments.
- Accessing equity - if your property has increased in value, or your mortgage has decreased, you can release some of the equity by remortgaging. You may want to remortgage to release equity to carry out home improvements which could increase the value of your property, especially if it is an extension or loft conversion.
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.
*all figures and data correct as of January 2021