Remortgaging your home

If you’re thinking about remortgaging your home, you're not alone. A recent study found that remortgage approval rates are at a nine year high.

What is a remortgage?

Remortgaging is the process in which a home owner switches their existing mortgage to a new deal.

This new deal could be with your current lender (called a ‘product transfer’), or it may come from a different provider. It doesn’t involve moving house or leaving your home, and the new mortgage will be secured against your home - just like your old mortgage.

Almost all home owners today remortgage at some point. In fact, very few people stick with their original mortgage for the whole term (for example, 25 years) until it’s paid off. Instead, they look for new deals that suit their current budget and needs. After all, it’s very likely that your financial situation will change during the lifetime of your mortgage and if so, it can be beneficial to find a new product or deal that suits your changing needs.

There are a wide variety of reasons to consider remortgaging your home. Every home owner has different needs. For example, you may want to borrow more money to fund other personal goals such as making home improvements, or it may simply be that you want to switch to a cheaper deal so that you can save money.

Some of the principal reasons when thinking about remortgaging your home include:

  • To reduce your monthly payments
  • To fix monthly payments so they won't rise for a specified period, regardless of market conditions
  • Raising funds for personal projects
  • Raising funds to pay for home projects, such as renovating your home or building an extension
  • Releasing capital to help children fund a deposit on a home of their own
  • Using the extra money to consolidate any debt you may have

However, there are a few things that you should consider before you look for a remortgage, such as:

  • Whether there are any penalties attached to your current mortgage, such as an early repayment charge
  • The lender may want to carry out its own property valuation
  • Make sure you have all of the information that you needed when you applied for your first mortgage, including proof of income
  • Seek mortgage advice from an expert such as Trussle to research your options and ensure that you choose the best deal for your circumstances

Why you may want to remortgage

There are a number of options available to you when remortgaging your home.

Remortgaging to get a better interest rate

One of the most common reasons why people remortgage is so that they can save money.

In many cases, when you first take out a mortgage there’s an introductory deal - perhaps a low fixed rate for the first two years, or a discounted rate for the first few years. So if you’ve had your mortgage for a few years and the introductory rate has ended, you may be interested in finding a new mortgage with more affordable interest rates.

However, it’s important to note that it isn't always worth switching. For example, if you only have a very small mortgage left to pay off, it may not be worthwhile to incur any switching fees for the sake of a slightly lower interest rate.

Either way, it’s important to sit down and work out how much the new deal will cost. You can use our remortgage calculator to get an idea as to what your future monthly payments could be and whether remortgaging would reduce the payments. Will it be worth making the change?

Remortgaging for more flexibility

Remortgaging can also give you the option to move to a more flexible loan. For example, you could switch to an offset mortgage, which means you’ll have the option to pull savings back if you really need them or to offset any savings interest against mortgage interest, with a net overall reduction.

Remortgaging to consolidate debt

If you’re struggling with debt, you may want to remortgage your home so that you can free up more disposable income each month to pay off your debts. This can be an affordable way for some home owners to consolidate their debts.

Remortgaging to fund home improvements

Many people remortgage their home to pay for home improvements, such as building an extension.

Remortgaging is often seen as a sensible way to fund home improvements. If wisely chosen, the improvements may actually increase the value of your home over time. This means that the improvements may be more of an investment than an expense.

Remortgaging for a changing financial situation

You may also want to remortgage if your financial or personal situation has changed - you may have started a family, for example. Many people find that their financial situation changes while they are paying off their mortgage due to benefitting from career progression and higher associated earnings. Conversely, others may struggle to keep up with their monthly payments.

Either way, it may be worth remortgaging if your financial situation has changed, as it’s likely possible that there’s a product which is better suited to your changed circumstances.

How can Trussle help you to remortgage your home?

Trussle can help you look at your remortgaging options. Our switching process is simple and convenient to use, so you don't need to worry about filling out a complicated form or paperwork that will take seemingly endless amounts of time.

Instead, you can follow a simple process online from the comfort of your home. You won't need to visit us or spend hours on the phone during work hours, and you won’t need to pay expensive broker fees. The process is also mobile friendly, so you can apply wherever you are.

Things to know about remortgaging with Trussle

A wide selection of lenders

We’ll be able to tell you if there’s a mortgage deal that’s better suited to your finances, so you can be safe in the knowledge that we’ve found the most appropriate product from our substantial panel of more than 90 lenders.

Free mortgage monitoring

If your current mortgage remains the best option for you, we won't encourage you to switch. Instead, our free mortgage monitoring service will keep an eye on it and compare it with the market each day in search of a more suitable deal. We’ll then send you an alert the moment it makes sense to switch.

We’ll need to know a few basic details before we can start searching for the right mortgage for you, such as what your current income is and some information about your current mortgage. You can explore your remortgage options with Trussle online, today.