With remortgage rates currently at the lowest they’ve ever been, now seems like the perfect time to think about remortgaging. Whether you’re looking to release equity from your home to help fund that renovation of your dreams, or simply want to save money on your monthly repayments, by changing mortgage providers you could be able to save hundreds of pounds per month.
In this article we go through what a remortgage is and what’s involved to help de-mystify the process and make you remortgage savvy.
What is a remortgage?
In a nutshell, remortgaging is when you consider swapping your mortgage deal from one deal to another, either with the same lender or a new one.
As with any other important purchase you consider, like looking for the cheapest phone bill or car deal, remortgaging allows you to shop around to see if your current mortgage deal is still the right option for you, or if there’s a better deal available elsewhere that now suits your current circumstances more.
Reasons why you might want to remortgage
With mortgage terms generally lasting for a large proportion of your life, from 25-30 years, people’s circumstances tend to change, and so the option of a remortgage could come in handy to better suit your current financial needs.
However, there are many reasons why you might want to remortgage:
- To save money on your monthly repayments
- To help raise money for any home improvements or extensions
- Your current rate is up for renewal
- You want to pay off debts
- To make overpayments if you have more disposable income per month than was currently the case
So, how do I become remortgage ready?
In a very similar process to applying for a mortgage, lenders will want to make sure that you’re a low-risk borrower. Like before, you’ll be likely to under-go credit checks and need to provide proof of incomings and bank statements, so make sure your credit score is in good working order.
If you’re interested in knowing how much you could borrow, why not check out our monthly repayments calculator to see roughly what you could be paying per month.
However, sometimes lenders can charge a fee for ending your mortgage term early so make sure to consider this when weighing up the cost of remortgaging.
Whatever your reasons for remortgaging are, there are many options available to you and our advisers can help you make the right choice for you. So get in touch today if you want advice on your remortgage.
You may have to pay an early repayment charge to your existing lender if you remortgage.