19 Mar 2024
Reasons to Remortgage
If you are looking at remortgaging your property but are unsure whether it’s the right decision, we have listed five reasons why it might be for you. There are other reasons but here are just a few.
1) Your current mortgage deal is ending
The majority of mortgages have an initial deal such as: fixed or tracker which for two, three, five or even ten years. After this time, the rate automatically goes onto the lender's Standard Variable Rate (SVR). The SVR will usually be much higher than your initial rat. It is therefore important to start researching a new product around 6 months before your deal is about to end. This will make sure you find one that is most suitable for you and allow you time to make the switch.
2) You are looking to find a better deal
With rates being record-high, many people believe they can get a better deal elsewhere. If you are on a fixed-rate mortgage deal – you may have to pay an early repayment charge or leaving fee to your existing mortgage so you must look at the overall costs before switching.
3) You want to borrow more money
Mortgage providers will lend extra money for a variety of reasons including, the most popular is making home improvements. You will have to give the reason as to what you are planning on using the money for, and the lender will do a full affordability assessment to ensure the new higher loan is affordable.
4) You want to pay off debts
Using the money released from your home through paying off debts with high-interest rates can make payments more manageable and reduce your monthly costs. However, there are risks involved in consolidating debt into your mortgage and you could end up paying more interest in the long run. It is very important that you take advice in this area
5) To change to a buy to let mortgage
If you are living in your property and your circumstances change and you want to let it out, you must seek your lender’s permission. Some lenders will give you “permission to let” but if you want to borrow more money or change the structure of the loan, you will need to remortgage to a Buy to Let lender.
To learn more about remortgaging and to find out if it’s right for you, get in touch with Mortgage Required: 01628 507477 | team@mortgagerequired.com.
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