Why people choose to remortgage

It’s always important to review your finances from time to time, consider your options and know that you’ve got a mortgage that fits your individual circumstances and needs.

Much like renewing your car insurance or shopping around for a good broadband deal, there will often be other mortgage rates out there that may be more suitable for you, and the process of changing this is called a remortgage.

Some additional reasons that many choose to remortgage:

• Taking advantage of lower interest rates

• The current fixed rate mortgage deal is up for renewal

• Looking to move from an interest-only mortgage to a repayment mortgage

• Looking to be able to make overpayments

• Seeking to borrow money for projects such as house renovations

Many mortgages will have an initial period of fixed rates, which expires generally after either 2, 3 or 5 years, after which you would revert to a Standard Variable Rate (SVR) and end up paying a higher rate than you previously enjoyed. This is one of the most common reason homeowners choose to seek a remortgage.

Of course, a mortgage is likely to be the biggest financial commitment you’ll ever make, so there’s a few things you should consider before taking the plunge and seeking to remortgage.

If you’ve spotted a new deal out there, there’s a few things to check:

• Check if your new lender is offering a fee-free mortgage or if there’s a hefty product fee that could counteract some of the savings you’d make by remortgaging.

• Look at what early repayment charge you may have on your current mortgage that needs to be paid off before switching to a new deal.

• Check the small print to see if there are fees for your new mortgage – arrangement fees, valuation fees and booking fees, for example, and factor these costs into your calculations.

• Make sure you’re ready for a mortgage – similar to when you first applied for your current mortgage, it’s important to have a good credit score and financially be in good condition, as there may well be similar checks undertaken as for a first-time mortgage.

Given the range of different mortgage types available, we strongly recommend that you seek advice from a qualified professional mortgage adviser before proceeding.

We will listen to your circumstances and make considered recommendations on the type of mortgage that may be most applicable to your circumstances. We also have access to the whole-of-market so can find the best deal in the market for your circumstances. We will review the situation and provide you with the facts so you are able to make an informed decision.

Contact us today for a FREE Mortgage review

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.

There may be a fee for mortgage advice.

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