Reasons Why You May Consider Remortgaging
There are multiple reasons why people look to remortgage; it is only natural that you will look for the best deal to save you money. Very rarely do you take out a mortgage and stick with the same one for the whole term.
Here are some reasons why you might want to remortgage your home.
Current Fixed Deal is up for Renewal
When you take out a fixed rate mortgage, it usually lasts for 2-5 years. Within this period you will pay the same amount every month, and the interest will remain the same. Once the initial term has ended, you'll fall into a standard variable rate (SVR) where you could end up paying a higher interest rate than before. Usually, this is the time to remortgage to switch to a better deal.
Looking for a Better Rate
You might want to seek a mortgage that has a better interest rate, although sometimes the lender requires you to pay an early repayment charge before you can switch. Make sure there are no unexpected fees that will end up costing you more money.
You want to make Overpayments
You may have received a promotion at work, therefore, a higher paying job now than you did when you took your mortgage out. You now may be able to afford to increase your monthly payments, but perhaps your current lender doesn’t allow you to. Consequently, you might want to look at changing over to a new mortgage.
Borrowing more Money
When purchasing a new home, we tend to move to a property that has a higher value than our current home. Therefore, needing to borrow additional money from the lender.