Remortgaging allows homeowners to switch their home mortgage to another lender, or negotiate a better deal with their existing one. It effectively means replacing your current mortgage with a new one. There are many reasons why homeowners choose to remortgage, but they usually fall into one of the following three categories:
Refinancing your mortgage may help you reduce your interest rate, depending on your existing contract – especially during periods where the Bank of England rate is low. Remortgaging can reduce monthly outgoings and may reduce your overall repayment amount or your mortgage term.
Interest rates can fluctuate. If you’re worried about rate rises over the short or medium term, remortgaging could allow you to fix your rate at current levels, allowing you to plan your monthly budget for years ahead.
If you’ve built up equity in your home, remortgaging can provide you with more funds to extend your home, pay off other debts, or more by freeing up money that you have invested in your property.
Of course, there are many things to consider before you remortgage, which is why we have local advisers to guide you through the process. With access to over 90 lenders, we can help you find a remortgage deal to fit your unique needs. For more information, we recommend you read our online remortgage guide here. If you’d like to know more, or if you feel ready to discuss your remortgage options, we recommend contacting one of our advisers so we can help guide you through the process – and make it easier.