Why should I remortgage? And when?

A common question we get asked is: should I remortgage?

There are many reasons why you may want to remortgage, but here are some of the most common reasons to remortgage your house…

Borrow more money

Remortgaging your home can be a great way to make those home improvements you’ve been contemplating over for so long. Whether it’s a beautiful, state-of-the-art kitchen or an extra room to make into a cosy home office, you might be able to release some equity you’ve built up to help fund these plans, and maybe add value to your home at the same time!

Your first step is to think about how much your renovation will cost and ensure you are able to cover the costs.  You also need to bear in mind that exiting your mortgage deal before the end of its discount period means that you may have to pay an early repayment charge. But don’t worry, our expert team will be able to talk you through any charges that you may occur.

Lower monthly payments

The main reason people remortgage is to save money on their monthly repayments. A better interest rate could mean lower monthly payments.

However, you need to consider early repayment charges that may occur if your current mortgage deal has not yet come to an end, it is important to weigh up the price of this against the costs you’ll be saving with the lower interest rate.

Your current deal is about to end

When your current deal comes to an end, your lender will put you onto its standard variable rate (SVR). This is likely to be higher than your old interest rate, so you’ll probably end up paying more money each month.

You should start looking around for better deals, three to six months before your current rate ends. Our advisers can help you switch to a better deal and ensure you aren’t paying more than you need to each month.

Want to overpay

You may have a higher paying job or been gifted some money, meaning you have more disposable income and can afford to pay more on your monthly mortgage repayments. This is great news! However, not all lenders will allow you to overpay so you may want to switch to another lender.

Again, this could mean you have to pay an early repayment charge, but we can advise whether it’s still beneficial to switch and help decide what is right for you.

Your home’s value has gone up

If the value of your house has risen since you last took out your mortgage, you may find you’re eligible for much lower rates, meaning lower monthly repayments. This can be worth looking into to make sure you aren’t paying more than you need to.

If you’d like to get in touch with us to discuss your remortgage options, we’re always here to help. With mortgage brokers in Woking and Camberley, you are never too far from mortgage advice.

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