Choosing a mortgage the first time around was difficult enough. The very thought of enduring the process all over again isn’t an attractive option for anyone. However, remortgaging offers a huge number of benefits – the main one being more money!
Here, we explain why you might want to remortgage…
1. Better interest rates
When your current mortgage deal comes to its end, you’ll be placed on your lender’s standard variable rate (SVR). Typically, this will be above your original interest rate, and higher than other deals out there too. But, with remortgaging, you can discover a less costly rate, particularly if payments have brought down your balance.
You can even look to remortgage if your current deal isn’t up yet. Whilst you may have to pay a low-priced exit fee, on top of a potential early repayment charge, there’s still the chance to cut costs overall – especially if you have a substantial mortgage debt.
2. More money
Times may have changed since you first took out your mortgage, and your property’s value could have increased. If this is the case, you might find yourself in a lower loan-to-value band, meaning you’re eligible for reduced rates.
You could also increase the value of your home via remortgaging. If you choose a deal that allows you to top up your cash pot, you’ll have the finances available to make some home improvements to boost kerb appeal. Whilst a lender will probably ask you why you want the money, for renovation work, it’s likely they’ll approve.
3. Flexibility to your circumstances
Your mortgage might not suit your present situation. For instance, it could have limitations on you financially – and not just because of high interest rates. Perhaps you want to make overpayments, but the deal prohibits you from doing so.
Alternatively, your mortgage may be dependent on the Bank of England’s base rate – and if this rises, so does the amount you’re paying. This worries plenty, so it’s understandable if you want to swap to one that’s more adaptable to your circumstances.
You may also want to switch from an interest-only deal to a repayment mortgage. Whilst your current lender should be able to make this change for you, it might not be the best value for money. Therefore, remortgaging can be beneficial in this situation.
Remortgaging really can be the way forward. However, finding a lender can still be a laborious task. But it doesn’t have to be. In fact, it can be super easy.
At Red Star, we’ll find you the best deal available for your specific situation, and quickly. We’re able to show you lenders who you won’t find on comparison sites, as well as provide tailored support and guidance at your convenience. You really can put your trust in us – we offer FCA-regulated advice, along with swift online comparison.
Want to benefit from remortgaging? Simply get in touch with our incredibly personable team today. We truly do make it hassle-free.