What is it? When, and why should you consider it?
Remortgaging is moving your mortgage from one lender to another, without moving home.Recently, we have seen some of the cheapest fixed rate mortgage deals ever made available, meaning many people could save money by switching their mortgage.
Remortgaging could be right for you if:
- Your current deal is coming to an end and you’ll soon be paying your lender’s Standard Variable Rate (SVR).
- Your deal has ended and you are already paying your lender’s SVR.
Whilst most people wait until their current deal ends before remortgaging, you can also sometimes remortgage midway through if this makes financial sense.
Remember though, it can cost money – your existing lender may charge an exit fee, as well as an Early Repayment Charge. You can incur costs when setting up a new mortgage deal too, so it’s
very important to do the sums before committing to your next mortgage.
Could a new mortgage deal reduce your monthly payments and save you money?
Just as you’d shop around to make savings on your other monthly outgoings, why not see if there is an opportunity to reduce your monthly mortgage payments. The savings could be much
bigger than those you can make on your utilities and insurance products.
Your home may be repossessed if you do not keep up repayments on a mortgage or any debt secured upon it.