‘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

Leaseholder   Web Larger

Housing Secretary Angela Rayner has announced a new measure to protect leaseholders in England and Wales from high fees and poorly regulated property management companies.

Your First Home   Web Larger

Saturday 26th September, Andy Burnham announced a new equity loan scheme called “Your First Home”. The scheme, which will be confirmed at next month’s budget, is aimed at first-time buyers looking to purchase a new-build property from a developer signed up to the scheme.

lost job web larger

Losing your job or finding yourself ‘between jobs’ is, unsurprisingly, a stressful place to be. Keeping a cool head and taking action is important.

Deals of week web larger

Here are the lowest fixed mortgage rates of the week, available to first-time buyers, home movers, buy-to-let, and those remortgaging.

Call us for more information: 01628 507477 or email: team@mortgagerequired.com.

Flats 40 Higher Than Houses   Web Larger

This price gap between the cost of houses and flats is the biggest it has ever been. Houses are now costing 1.7 times more than a flat, which is 0.4 times higher than 10 years ago

Take a look at our list of houses vs. flats per area.

Are Rates Increasing   Web Larger

We have seen several lenders increase their mortgage rates over the last couple of weeks. This suggests mortgage rates are likely to rise.

Although nothing is set in stone, lender repricing, rising swap rates, and continued economic uncertainty suggest borrowers should prepare for higher mortgage costs.

Ai Enhanced Images   Web Larger

According to data from House Buyer Bureau, where over 900 UK homebuyers were surveyed, 54% of people said that they immediately ruled out digitally enhanced property listings.

April Mortgages   Web Larger

April Mortgages - only accessed via a mortgage broker - offers first-time buyers, renters, and home-movers the option to borrow up to 7 times their income on its longer-term mortgages.