Remortgaging can save you a large amount of money each month for several reasons.
Firstly, it may allow you to get a better rate on your mortgage, saving you money on higher interest rates. The larger the amount of mortgage debt, the larger the amount of money saved.
Furthermore, if your lender won’t let you overpay on your current mortgage and you have come into some additional money; remortgaging can be a great way to reduce the size of your loan and have a cheaper rate attached to your mortgage, thus saving you money.
Also, remortgaging can still save you money if your credit file has hit a few bumps on the road since you were approved for your previous mortgage. Many mortgage brokers work with lenders that understand personal circumstances can change and take this into account when finding the best option for you.
2. When is the best time to remortgage?
The most ideal time to remortgage is when your current mortgage comes to an end. Many of the best mortgages often last less than five years before the rates increase significantly under the same provider, often at worse value than remortgaging.
When a mortgage deal comes to an end, the lender often switches the customer onto their standard variable rate, which can be very high. Remortgaging your property can usually offer better rates than this. So, this is a great way to avoid your rates significantly increasing when your mortgage ends.
3. Remortgaging can help you pay off debt;
Additionally, remortgaging can allow you to borrow more money as it can be cheaper than other forms of borrowing. This could be a good option if you’re looking to raise money at a low rate and your current mortgage provider will not lend you any further money or, if their borrowing terms are less than ideal.
Generally, many mortgage lenders will allow you to borrow up to 85% of the value of your property. This can be used to pay off a more costly debt, such as a credit card with a high interest rate or to carry out maintenance to your property. This can save you money as the rates on your mortgage will often be lower than more traditional forms of borrowing.
4. So, should I consider remortgaging?
If you’re looking to save some money on your current mortgage, seeking to avoid high interest rates or to borrow additional money, then remortgaging your property could be beneficial for you. With many great benefits, remortgaging can be as easy as searching for a better deal on your mobile phone contract and leave you with more money in the bank each month. For mor einformation, please contact us.