Should I remortgage?
Most homeowners remortgage their home at some point in their life. It’s no longer the norm to stay in a mortgage deal for the full term – usually a 25 year period.
But is remortgaging worth it?
There are a number of reasons you may want to remortgage your home, and we’ll take a look at these in more detail below.
1. Reduce your monthly mortgage payments
By shopping around, you might find a mortgage deal that reduces the amount that you pay each month.
2. Fix your monthly mortgage payments
If you’re currently on a variable rate mortgage but want for more stable mortgage payments for a specified period, you may want to find a new fixed interest rate mortgage.
3. Get a more competitive interest rate on your mortgage
Some mortgages will offer a lower-interest introductory period. When that period comes to an end, it can often be worth switching your mortgage to gain a more favourable deal elsewhere.
It’s important to know how much you have left to pay off on your current mortgage, as it may not be worth the switch if there are any penalties or switching fees involved.
4. Get more flexibility with your mortgage
Some mortgage types come with a bit more flexibility, and this may suit your current needs. An offset mortgage, for example, enables you to offset any savings interest against mortgage interest.
5. Remortgage for debt consolidation
With interest rates on mortgages often lower than those of credit cards and other debts, it may be worth considering shifting other outstanding loans to your mortgage. This isn’t always the case, however, so it’s always worth speaking with a fee-free mortgage broker to discuss your options first.
6. Remortgage for home improvements
If you’re considering doing any home improvements, remortgaging can help you access additional funds. By making improvements that add value to your home, this could also act as an investment in the long run.
7. Remortgage to release equity
Maybe you’re looking to help your children fund a deposit on a home of their own. If you’re looking to free up some capital, remortgaging your home can release the equity you need to help you do just that.
8. Adapt to a new financial situation
Whether you start earning more or find yourself strapped for cash, remortgaging your home allows you to find a product better suited to your new needs.
Note that should you experience financial difficulties, you may find it hard to remortgage with a new lender as they'll need to test that your income is sufficient to cover your new mortgage payments.
Other things to bear in mind when switching your mortgage
Remortgaging your home, for any of the reasons mentioned above, could help you save money in the long run.
But there are also some things you’ll want to bear in mind before you take the plunge:
- You’ll be asked to provide the same documents and information you provided when you got your previous mortgage (when switching to a new lender).
- Your new lender will want to carry out their own valuation of your home.
- There may be a penalty attached to your current mortgage, such as an Early Repayment Charge (ERC).
- It might prove move difficult to remortgage if you have a bad credit history, but there are options available.
You’ll find our remortgage calculator convenient to use. Plus, the process of using Trussle to remortgage is simple: you can even go through it from the comfort of your own home.