Whether you're coming to the end of your current mortgage deal with your existing lender, or you're looking for a more attractive mortgage, we have a range of options that you might find tempting.
What is remortgaging?
Put simply, remortgaging is moving your mortgage from one lender to another without moving home.
Some people wait until the end of their current deal before remortgaging but you don’t have to, however, there are some important things to consider when thinking about remortgaging:
- is there is an early repayment fee on your current deal or an exit fee?
- look at both initial and ongoing interest rates when comparing your current mortgage rate with those offered by other lenders
- what set up costs there are on your new mortgage deal, for example, application fees and legal fees?
There are generally four reasons why people look to remortgage:
As interest rates can change regularly you may find a lower rate than your current deal, which could make your monthly mortgage payments lower.
As an alternative to moving to a bigger house, it may be possible to add space and value to your existing home with an extension or conversion. Remortgaging could be a way to release some equity in your property to pay for this.
Some people release money so they can spend it or pay off other debts. If you do this it's important to remember that the amount you owe on your mortgage will go up but the value of your home may not.
Take care to understand the risks with increasing the borrowing on your mortgage. Make sure you can afford the new monthly payments as your home could be repossessed if you do not keep up repayments on your mortgage.
Fixing your mortgage payments
Some people want the security of knowing exactly what their mortgage payments will be for a set period of time (e.g. 2 years) and change to a fixed rate mortgage to achieve this.
Change in financial circumstances
It's not unusual for people's personal circumstances to change, for example, due to increases or decreases in income and outgoings, or a major life event. If this happens you may decide that it is an opportunity to reivew your mortgage.