Simply put, remortgaging means paying off the proceeds of one mortgage with a new one, using the property as security on the loan.

There are a number of reasons that people choose to remortgage and these tend to range from things such as reducing their monthly payments to releasing additional capital from their home.

Here are four of the main reasons that people will tend to remortgage their property.

Get a better rate

Generally, at the end of a fixed term, the interest rate you pay on your mortgage will go up and this if often a trigger for people to consider remortgaging to a product that offers a lower, more competitive rate.

It may also be that you have been sitting on a variable rate for some time and better deals are available. Remortgaging to a lower rate could save you a significant amount of money over the mortgage term.

Funding home improvements

So perhaps you want to get that tired kitchen or bathroom replaced or maybe even get that extension you have always dreamed about. You could even use the funds to invest in a deposit for another property.

Remortgaging gives you the option of increasing the size of your overall loan, therefore releasing capital locked up in your home at the lowest possible rate.

This has the added benefit of giving you the option to increase the value of your home with the improvements you may choose to make.

Consolidating your debts

Because remortgaging tends to enable you to borrow at the most competitive rate possible, it can give the option of not only reducing the amount of interest you may be paying on current debts but also having them all under a single payment that you are used to already.

This is generally a better option than paying a credit card interest rate, for example. It is important to check for any early repayment charges when consolidating debts, however.

Reducing your payment term

Another reason people may choose to remortgage is to reduce their overall payment term. This can be done by finding a cheaper deal and keeping their payments the same (as that is what they would be used to).

Doing this will simply mean that the debt will be cleared quicker and generally means that they will own their own home sooner than if the payment was reduced.

Can We Help?

If you would like to discuss any questions regarding a remortgage, we will be more than happy to help where we can.

Our team have a significant amount of experience, so do reach out to us on 01322 553282 or contact us online.