A Guide to Remortgaging
What is Remortgaging?
Remortgaging is the process of switching from your current deal to another mortgage deal.
This process can be completed with your current lender or you can exchange to a new one who will find a better deal that suits you and your financial requirements.
Why Remortgage?
The reasons why someone will want to remortgage vary. Whether it’s to add value to the property by improving it or maybe to pay off debts that are accruing interest.
Many look to change as their current deal is nearing an end so looking for a newer, better deal may reduce monthly payments and takes advantage of the lower interest rates.
Fixed term mortgage agreements aren’t typically long, usually two to five years. Lenders look to push homeowners to their Standard Variable Rate which can be more expensive per month.
Misconceptions
Many assume that remortgaging means you gain more debt.
However, this is not case for most homeowners.
This may be if you are looking to remortgage to release equity from your property.
But for the majority, remortgaging is the way to go if you are looking to reduce those monthly costs.
Conclusion
So this complicated sounding process is simply just switching to a cheaper lender.
You can equate the simplicity of remortgaging as looking for a better phone contract or a better car insurance deal.
Think carefully before securing other debts against your home. Your home may be repossessed if you do not keep up repayments on your mortgage.