THE BENEFITS OF A REMORTGAGE

There are many benefits to be obtained by switching your mortgage to a different lender, but the benefit, which is right for you, will depend on your own ambitions and plans.

Save Money and Pay Off your Mortgage quicker

In order to get more business you will invariably find that a lender will offer a better interest rate and more incentives to a new borrower, whereas the lender’s existing borrowers may be stuck with that lender’s main interest rate known as their Standard Variable Rate (SVR).

A SVR is basically the lenders own base rate and is often linked to the Bank of England base rate and so can change over time.

If an existing borrower never takes any action to change his or her mortgage then they may pay thousands more over the life of the mortgage than a new borrower who could get a better deal. When you are ready to remortgage then just give us a call. Don't worry if you have less than perfect credit as our specialist brokers have access to many lenders who can help you.

If this is you then it may benefit you to seriously consider a change. A remortgage with an improved rate of interest you could reduce you monthly payments, which may allow you to pay off your mortgage sooner or give you extra cash to spend on other things.

As with any new mortgage there are costs involved in making a change and you may have to pay a redemption penalty if you remortgage, but even so there is the potential that you could still be better off. You just need to review your existing mortgage, do the maths and make a decision.

Even if you have changed your mortgage in the past it always pays to be ahead of the game and make a habit of occasionally checking the market to compare what is available against your existing deal to see if there may be any benefits in changing again.

This is especially true if any introductory discount you may have had on your existing mortgage has come to end. Switching to a different lender may get you more flexible terms, another discount or an even lower mortgage interest rate.

Get Cash Back for other Projects

Increasing the size of your mortgage can enable you to get cash back when the new mortgage pays off the old one. You will need to have positive equity in your property to do this. If you have negative equity then this option will not be available to you.

There is no restriction on what you spend the cash on. It is entirely up to you.

If you need to borrow anyway then doing it through a mortgage loan is cheaper than most other types of loan. Also if you don’t want to move home right now but need more space then getting money out of your home could allow you to build an extension or do other major improvements, and this would increase the value of your property as well.

Reduce or Stop Payments on Other Loans or Credit Cards

If you have other loans, such as large credit card balances, bank loans or auto loans, which are charging you a high rate of interest then you can pay them all off using the money from an increase in your mortgage amount and then pay a lower interest rate through your new mortgage.

This will have the effect of reducing what you have to make in repayments each month. This can be a very cost effective way of taking control of what you owe to lenders.