Think carefully before securing other debts against your home. Your home may be repossessed if you do not keep up repayments on your mortgage or any other debt secured on it.
When you remortgage you switch your mortgage to another deal with another lender.
Many people are simply looking to switch mortgages because the monthly payments will work out cheaper for them. For example, the introductory discounted interest rate may have finished with your current lender and you are looking for a better deal with another lender. Some may be looking to release money to do home improvements.
A remortgage may not always be the best option. Even if the lender you are considering switching to is offering a lower rate, you must take into consideration the facts that:
The new lender may charge you for valuation and solicitors fees.
Contact our refinance team who will look at your current circumstances, outline what you are trying to achieve, whether you have any early repayment charges on your existing deals and discuss the options available with you.
When you remortgage, you are switching your mortgage to another deal, and frequently, another lender.
Remortgages can be used for various reasons. However, most people simply switch mortgages because it will work out cheaper for them. For example, the introductory discounted interest rate may have finished with your current lender; therefore you could potentially get a new discount rate, or a lower APR, with another lender. Another example is when you may need to re-mortgage to consolidate debts.
It is worth noting that a remortgage is not the best option in all cases. Even if the lender you are considering switching to is offering a lower APR, you must take into consideration the facts that:
The new lender may charge you for valuation and solicitors fees, even if you have already paid these for your mortgage with your current lender.
If you switch mortgage remember to look at the overall repayment period. You may be able to pay less monthly, but check the final repayment date of the mortgage as well.
Also you may be able to switch your mortgage deal with your current lender, avoiding any unnecessary costs. Many lenders will allow you to switch your mortgage deal reasonably frequently.
Securing short term debts against your home could increase the term over which they are paid and therefore increase the overall amount payable
You may have to pay an early repayment charge to your existing lender if you re-mortgage.
Find out what we can do to help you with your finances. Get in touch with us today!