Remortgage to save your hard-earned Money

If you’ve mortgaged your home and now need additional funds, consider “remortgaging” as a viable option. Remortgaging involves replacing your current mortgage with a new one from a different lender, often to benefit from better terms, lower interest rates, or to raise extra funds.

Benefits of Remortgaging

1. Debt Consolidation

Remortgaging allows you to consolidate existing debts into a single mortgage. This simplifies your finances by reducing the number of creditors to one—the new lender.

2. Home Improvement

By tapping into your home's equity through remortgaging, you can fund home improvements. New lenders often offer lower interest rates compared to unsecured personal loans or credit cards.

3. Save Money

Switching to a new mortgage with a lower interest rate can help you save on the extra money you were paying with your previous lender.

How Much Can You Borrow?

With remortgaging, you can typically borrow from £25,000 up to £500,000, depending on your property’s value. This flexibility allows you to secure a larger loan at lower interest rates, helping you clear existing debts and save on interest.

Steps to Remortgage

1. Understand Your Current Mortgage

Before proceeding, review your existing mortgage terms. Determine if there are any early repayment charges or penalties. Key questions to consider include:

- Are you in a special rate deal, and if so, for how long?

- Are you in an overhang period if your special rate has ended?

- What penalties, if any, apply to moving your mortgage?

2. Search for Remortgage Offers

Shop around for the best remortgage deals. Collect quotes from your current and past banks, and explore online lenders for potentially better offers. Comparing various options ensures you find the most favourable terms.

3. Apply for the Loan

Once you’ve gathered and compared quotes, apply for the remortgage that best fits your financial needs. Be aware of all associated costs, including setup fees, ongoing interest charges, and any redemption fees from both your old and new mortgages.

Additional Considerations

- Bad Credit Remortgages

Some lenders offer remortgages specifically for those with bad credit history, arrears, or CCJs (County Court Judgments).

- Market Conditions

Remortgaging can be particularly beneficial when market conditions are favorable and interest rates are decreasing.

By carefully considering your current mortgage status, shopping around for the best deals, and understanding all costs involved, remortgaging can be a strategic way to manage your mortgage more effectively.