The main reason for remortgaging is to save money on your monthly payments.

More and more people are discovering the savings to be had when they make the switch from their current mortgage provider to a new one.

At this time, when interest rates are at a historic low, there are plenty of good remortgage deals to be had so if you think that you may be paying too much on your current mortgage make sure you shop around. It could save you thousands of pounds in the long run.

You may also be looking to raise capital to use for the likes of debt consolidation, home improvements, a deposit for a buy to let property, or to buy out someone else’s share in the property – If you have enough equity in your home – that is, the mortgage is quite small compared to the property’s value – you can remortgage for more and take out some of the equity in cash. You can use this cash for almost any (legal!) purpose.

You may also want to make a change to the terms of your mortgage i.e increase/decrease the term, change from repayment to interest only or add/remove someone from the mortgage. Your existing lender may not allow you to make these changes so your only option would be to re-mortgage elsewhere.

Whatever your reason for wanting to re-mortgage, using a fee-free mortgage broker such as ourselves means that you will get independent advice and all the help you need to find the best deal for you.

When should I remortgage?

There are times when it’s a good idea to remortgage and times when it’s best to stick with your existing lender.

It could be worth remortgaging if:

• You’re at, or are approaching, the end of your existing mortgage deal
• You’re paying too much and you’re on a high interest rate
• You want to take some money out of the property to use for other purposes (capital raising)

You should stick with your current lender if:

• You’re tied in to a deal and would have to pay an early repayment charge if you remortgaged switched – unless the overall savings made it worth paying the early repayment charge.
• If capital raising and you can obtain additional borrowing from your existing for cheaper than remortgaging elsewhere.

If you’re unsure whether or not you should be looking at re-mortgage or if you have any questions just get in touch.