• A Few To The Point Reasons Why You Should Consider a Remortgage

  Filed under Articles
  Jul 1

  Paying the mortgage every month often becomes force of habit. Your direct debit simply comes out of your bank account every month and you don’t often stop to think about whether you’re getting the best deal. The idea of switching your mortgage to another provider seems like an inconvenience and busy people often have far more pressing concerns than their home loan.

  The reality is, however, that changing your mortgage arrangements could actually benefit you. With current concerns over inflation and job security, it is crucial that you take care to look after your finances. And, with literally hundreds of mortgage deals on the market there may well be a scheme that is better for you; whether that is with your current lender or with another provider.

  It is vital before you start looking for a remortgage, that you take a good look at your current mortgage deal. You should know your current interest rate, the product type (i.e. fixed rate, variable rate), and where there are any fees to exit the mortgage. It is also advisable to think about the service levels of your existing lender – have you had problem after problem with them, or has it been a smooth ride?

  Check that the amount you are paying on your current mortgage seems reasonable. If you think you’re likely to be paying too much for your home loan over the next few months or years then it may be time to consider an alternative. The savings you may be able to make by switching your deal could be quite substantial, and so it may well be something you should consider.

  It is very rare in modern times that people stay with the same lender, on the same mortgage product for the full term. People now like to shop around to get the best deal and to save the most money in terms of interest.

  Speak to your current lender to establish whether they have a mortgage deal that is better than your current product. And, as well as changing your mortgage deal you may also want to ask your lender if they are prepared to offer you an additional loan, for example to consolidate other borrowings such as a loan or credit cards.

  You should also see your remortgage as a way to consolidate your debts, as this will ensure that they are paid off, all be it over a longer period. And this is something to be wary of. If you repay your debts over a longer period then you’ll end up paying more overall, however many people like this options because the monthly repayments are lower.

  As mortgage rates are typically lower than credit card rates, consolidating your debts mean you pay less interest on your borrowing. In addition, a mortgage allows you to take the debt over a longer term meaning you can benefit from more affordable monthly repayments.

  Remortgaging also allows you to borrow money for other reasons. For example, if you are setting up a new business you may need capital to fund this. If you have some equity in your home you may be able to release this in order to help you meet the start-up costs of your small business.

  Another great tip is to use a financial adviser when looking to consolidate debts or raise funding. They can help you to work out which options would give you the biggest savings both in the short and long term, and can also source products that may not be available to the public.

  Timothy Frodsham writes for JustRemortgages.com one of the UK’s top sites for the latest remortgage rates and best remortgage deals.

  Tagged as: Best Remortgage Deals, remortgage, Remortgage Deals, Remortgage Rates, remortgages
  
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