Remortgaging

Statistics have shown around a third of home loans in the UK are remortgages. Remortgaging is essentially taking out a new mortgage on a property. 

Reasons to remortgage

For many people, a mortgage is their biggest financial commitment. So of course, streamlining the largest debt can produce the largest savings. 

Most people shop around for the best deals on contract insurance. Therefore, you could miss a trick by not doing the same with your mortgage. 

Some other reasons you may wish to remortgage are:

• Your circumstances have improved, or your home has risen in value. Meaning you might obtain a better deal.
• You want to switch to a different kind of mortgage, or you need a more flexible mortgage e.g., fixed, capped or tracker.
• You want to borrow money against your property. Remortgaging can allow you to release some of the equity that you have built up over the years. It can be a great way to raise money for home improvements or big expenses.
• Your current mortgage deal is about to end (most only last between 2-5 years).

There is no limit to the number of times you can remortgage. Therefore, you may have several policies over the lifetime or your mortgage.

Is remortgaging right for you?

Remortgaging isn’t right for everyone even if your current deal is due to expire. Therefore, in some circumstances, it's best to stick to your current plan for example:

Your outstanding loan is small (less than £50,000). As a result, the switching fees may cancel out any potential savings that have a large redemption policy.

You have a high loan-to-value ratio. Accordingly, if your equity is low, then you will struggle to get a better deal elsewhere.

Your circumstances have deteriorated. Your current mortgage is based on having a higher or more reliable income than you have now. Consequently, you might not get a better offer (it is still worth trying).

You can borrow money more cheaply elsewhere. Although it is possible to borrow money against your property, it’s rarely the best solution.

How to remortgage

The best way to decide about remortgage is to ask a mortgage advisor. We have many professional advisors to choose from at Regulated Advice.

Your advisor can help you assess your current deal.  Take your current circumstances into account, and find the best deal for you from the whole of the market.

They can also let you know of any lock-ins or negatives of the deal. Therefore, ensuring you don’t get caught out further down the line. 

Making the right choice at the right time can potentially save thousands of pounds over the mortgage term. The average remortgage takes around 1-2 months to complete so if it is something you are looking into its better to get it done sooner rather than later. 

Find a mortgage advisor

Let Regulated Advice match you with a mortgage advisor for expert advice.