Remortgages involve switching your current mortgage to a new lender. Sometimes this can be arranged with your current mortgage provider or a new funder.

 

Homeowners remortgage for a number of reasons:

Saving Money

 

If you're paying your lenders' Standard Variable Rate you could find they may well offer you a lower interest rate,  especially as they would want you to stay with them rather than shopping around. Alternatively, you could switch to another lender. It's certainly worth contacting your current lender first. By renegotiating your mortgage rate or adding flexible features, you could reduce your monthly payments.

 

 

If you want to raise money to make property improvements, purchase an additional property or for other purchases such as a car, or a wedding, it can often be cheaper to remortgage and increase the mortgage amount than to take out an additional loan.
This is because mortgage interest rates are typically lower than personal loan or credit card rates. You can increase the size of your mortgage if you have equity in your property, and your income is sufficient to meet the new repayments.

Home Improvements

It can be cheaper and more convenient to adapt or add an extension to your existing home, paid for by a remortgage than to move property. New kitchens, bathrooms and conservatories etc can enhance your home and add to its value.

Debt Consolidation

Credit Card and Unsecured Personal Loan interest rates are usually more expensive than mortgage rates, so using the equity in your home to pay off your debts can be very helpful.

Endowment Shortfalls

 

Rather than increasing your savings or investment contributions you may find switching to a repayment mortgage is a better way to meet any endowment shortfall.

 

 

You can compare remortgage providers,  visit their websites and make direct online applications and enquiries in our Remortgage category.