Reasons To Remortgage Now
1. Get a Lower Rate
1 in 5 mortgage borrowers pay over the odds by staying on a lenders standard variable rate. This is usually 2% higher then the most competitive deal available on the market. If your monthly payments was £1000 on an SVR of 7.5% you could save almost £170 per month by remortgaging to a more competitive 5.5% deal.
2. Choose a more secure deal
If you are on a variable rate and interest rates rise, you may want to consider remortgaging to a Fixed Rate. This gives you the certainty of what your mortgage payments will be, and you can rest assured you will not pay more when interest rates rise.
3. Make Home Improvements
Extending a house, renovating a kitchen or bathroom or carrying out a loft conversion can add around £20k to the value of a property. By remortgaging and realeasing some equity from the property would help fund for the home improvements.
4. Find a Flexible Mortgage
Flexible features, such as the ability to underpay, overpay and take payment holidays, can be very useful, especially if your income has gone up and you want to pay off the mortgage early, or are taking a career break to look after your children for example. Remortgaging to a flexible deal means you can pay off your mortgage in a manner that best suits your lifestyle.
5. Consolidate your debts
If you have a lot of credit card and personal loan debts, you could potentially reduce your monthly payments by consolidating your debts into your mortgage. This is becasue the interest rate on a mortgage is often 10% lower than the interest rate on a credit card.
6. Capital Raising
If you are looking to raise some capital to help your children towards a deposit, or are looking to buy an investment property. Then you could raise some capital from the equity in your property.
