Remortgaging is the process of replacing your existing mortgage with a new one whilst remaining in the same property. There are various reasons for using this process but, most people, simply switch mortgages because it will work out cheaper for them.
Once the introductory discounted rate ends with your current lender you will be moved to their Standard Variable Rate (SVR) and this is unlikely to be the cheapest option for you. Potentially you could get a lower interest rate with another lender and, in most cases, secure a new rate in advance. We advise all our clients to consider their remortgaging options six months ahead of time.
Have debts to consolidate?
It may be possible to consolidate other debts, such as credit card debt or personal loans, by remortgaging which could result in lower monthly repayments.
If your property has increased in value since you took out your original mortgage, you may be able to remortgage to release some of the equity to use for that new kitchen or conservatory.
It is worth noting that remortgaging is not the best option in all cases. You may be locked into a poor deal with an early repayment charge which would cost too much to switch. We are fully attuned with the remortgage process and can advise of the best course of action to suit your individual circumstances. It may turn out that it is beneficial to remain with your existing lender – if that’s the case – that will be our recommendation. Let us do the research.