‘Remortgaging’ is simply when you either change the type of loan you have, or the mortgage lender, or the terms upon which you borrow. There can be many reasons to do this but here are the three main reasons;
1. To Raise Cash
Sometimes we need access to cash we don’t have. The cash might be needed for a very good cause, such as to pay a private medical procedure or help to send a child to university. Unfortunately, we don’t all have access to large sums of cash and taking out personal loans can be expensive.
Most homeowners would consider their main asset to be their home. However, unless you sell it the cash tied up in your home remains just that - tied up - until you die and it is sold by your estate.
Remortgaging is one way to release cash now and arrange to repay it over a longer period of time, whilst still living in the home. This puts your assets to work for you. Furthermore, borrowing by way of a secured loan on your home is probably the cheapest way to raise cash.
2. To Get a Better Deal
Many mortgages are taken over 25 - 30 years, or more. Early on, the equity in your home is likely to be small but as time passes the erosion of the outstanding debt and the increase in house prices might mean that instead of say 10% equity you find you now have 35% equity.
Remortgaging with 35% LTV (Loan to Value) will almost certainly result in you being able to secure a cheaper interest rate going forward. It’s also possible to restructure your loan so that it is paid over a longer period of time, thus reducing monthly repayments or over a shorter period of time, thus reducing the interest accrued on the loan, should your household income increase and allow you to put more money aside every month.
3. To Lock in a Low Mortgage Interest Rate
We are still living in an era of historically low interest rates. But for how long? A prudent homeowner will always allocate time to review their financial commitments and consider whether locking into a new fixed or capped rate mortgage might not be a sensible option.
Click here for more information about our remortgage services.
For advice on mortgages and what deals are best for you and your circumstances contact Mortgage Required on 01628 507477 today.
Download our Free First Time Buyers Guide
Recent posts
Data shows landlords could miss out on green mortgages due to expired energy performance certificates.
Buying a house is a big deal, and where you are planning to buy will make a difference financially. In this short blog, we look at the most affordable and most expensive areas and how much you need to be earning to buy in there.
Pros and Cons of Equity Release
11 days ago
Equity release is a type of mortgage that allows homeowners 55 and over to access money from their property's equity without having to leave their home. This is done by securing a loan against the house which is usually repaid by selling the property when the borrower passes away or has to move into long-term care.
Your House Viewing Checklist
12 days ago
It’s important to ask questions about the property you are interested in before taking that step to make an offer. A little probing can make all the difference between buying your dream house or something that requires a lot of work.
Half of over 60s predicted to benefit from accessing housing wealth through Equity Release
15 days ago
There are millions of homeowners over the age of 60 who are likely to release money from their homes to pay for their lifestyle during retirement giving those who are 'asset rich but cash poor' a way to live out their retirement the way they wish.
Average Age of the First Time Buyer in the UK
22 days ago
The average age of a first-time buyer in the UK is two years older than 10 years ago. This is understandable with managing the cost-of-living and challenges within the economy such as high interest rates making it difficult to get onto the property ladder.
Delayed Start Mortgage from Skipton
24 days ago
Skipton Building Society launches ‘Delayed Start’ mortgage meaning first time buyers won’t be required to make repayments for the first three months.
According to a survey by Skipton, first time buyers who bought their home in the last five years found that in the first three months of living there, they were spending upwards of £30,000.
Gardening Tips for Beginners
2 May 2025
If you have recently moved into a property with a garden that requires a little TLC, or you’d like to get on top of your current green space, check out our tips.
More information
Trusted by
