Reasons to consider remortgaging

Carefully consider all your options before making a change

When you remortgage, you switch from one mortgage to another on your own home. This might be a new deal with your existing lender, or you could move to a new mortgage with a different lender.

Remortgaging is an important financial decision and can be as significant as obtaining your first mortgage. Your mortgage is your biggest financial commitment, so it’s crucial to carefully consider all your options before making a change.

There are various reasons why you might contemplate remortgaging

Your current mortgage term is ending

You’ll be moved onto your lender’s standard variable rate (SVR), which you want to avoid at all costs since the interest rate is almost always much higher.

Increasing your borrowing

You might want to free up funds for a significant expense, move home, or need additional money to fund a home improvement project. Other reasons might include paying for measures to improve your home’s energy efficiency, covering school fees, investing in a buy-to-let property, or consolidating debts.

Reducing monthly repayments and overpaying

You can reduce your monthly repayments to secure a cheaper deal and make your mortgage more affordable each month. You don’t have to borrow more to switch to an alternative deal with more favourable rates. Although there may be fees involved in exiting your current deal, it could still be financially advantageous.

Overpaying your mortgage

Your circumstances may have changed, and you may want to move to a mortgage provider that allows you to overpay your mortgage by more than your current one permits.

Responding to rate changes and property value increases

Changes in the Bank of England base rate can prompt you to shop around for a more competitive rate if you’re on a variable-rate mortgage. Moreover, if your property has increased in value, a lower loan-to-value (LTV) ratio might enable you to qualify for a reduced mortgage rate.

Fixing your payments

If you anticipate changes in your circumstances or foresee rate increases, you might remortgage to a fixed-rate deal to provide certainty of your monthly mortgage outgoings.

Ensure you are on the best deal and not overpaying

Selling a property with a mortgage presents choices such as porting your mortgage or repaying it and switching to a new deal. We can help you determine the best option for you. It can be prudent to look at remortgaging every few years to ensure you are on the best deal and not overpaying.

Set a reminder for three to six months before your fixed deal ends. This will give you sufficient time to discuss your options with us and complete your remortgage application in time to switch to a more competitive deal. If you’ve paid off a substantial amount of your mortgage over the past few years and gained equity in your home, switching to a different mortgage could reduce the interest you pay every month because you can take advantage of alternative deals.

Other considerations

You may incur penalties if you switch before your current mortgage deal expires. However, we can calculate whether it may still be cheaper for you to pay the penalties and switch.

It typically takes between 18-40 days from application to offer to remortgage. However, there are no hard and fast rules regarding the time it takes.

Ready for a discussion about your remortgage requirements? 

Please get in touch with us if you require further information or would like to discuss your remortgage options in detail. We are here to help you through the process and secure the right deal for your circumstances.