Here’s a breakdown of when and why remortgaging might be a good idea:

1. Reviewing your mortgage deal: One of the most common reasons homeowners remortgage is to gain a new interest rate away from their lenders standard variable rate. The best time to start reviewing your current mortgage deal is 6 months before the expiry date of the current rate. It is always best to look at your options early as your circumstances may have changed since you last set up your mortgage and having a 'health check' on your mortgage can be beneficial.

2. Remortgage Options: Remortgaging allows you to review the type of interest rate you currently have whether thats a fixed rate or variable rate. The benefit of being able to remortgage is that you can review your options and have advice on the right product for you and your circumstances

3. Shorten Your Loan Term: If your financial situation has improved, remortgaging can be an opportunity to shorten your loan term from, say, 30 years to 15 years. While this often increases your monthly payments, it can save you a substantial amount in interest and help you pay off your home faster.

4. Access Home Equity: Remortgaging can also be a way to tap into your home's equity. This is often done through a cash-out remortgage, where you borrow more than you owe on your existing mortgage and pocket the difference. The funds can be used for home improvements, paying off high-interest debt, or other major expenses. However, it’s crucial to consider the long-term implications, as this increases your mortgage balance and may extend your repayment period.

5. Consolidate Debt: For homeowners with significant high-interest debt, remortgaging to consolidate debt into a single, lower-interest mortgage payment can be a financially savvy move. This can simplify your finances and potentially lower your overall interest costs, but it's important to manage it carefully to avoid accumulating more debt.

In summary, remortgaging can be a powerful tool to improve your financial situation, whether you’re looking to lower your interest rate, change your loan type, shorten your term, or access equity. Always weigh the benefits against the costs and consult with a financial advisor to ensure it aligns with your long-term goals.

If you would like more advice on remortgaging, or are looking to remortgage & would like to compare the best mortgage options, our Director & Mortgage Broker James offers free appointments to put your mind at ease & discuss your options

For advice or to make an appointment with James use the contact details below:

Call us on 01777 808777

Email us at james@nc-fs.co.uk

Click the image below to book an appointment online