There are many reasons that homeowners consider remortgaging, and for good reason too. In this latest blog post, we’ll be covering the top SIX reasons as to why people consider and proceed with remortgaging. We’ll also be covering whether or not remortgaging may be a suitable option for you at this stage and how you can seek the expert help you’re looking for.
But, what is remortgaging? In simple terms, remortgaging is the process of negotiating your current mortgage for a better deal. This can be achieved through your existing lender or a new lender.
To get the best remortgaging deal, it’s always advisable to go through a trusted and reputable mortgage broker just like Bell Financial Solutions, and gain access to over 90+ lenders on the market.
The process of remortgaging can be managed by Bell Financial Solutions which starts with getting a decision in principle. Secondly, we’ll then help you to apply for a mortgage with access to dozens of lenders.
Here are the top SIX most popular reasons for remortgaging
Get an improved mortgage rate
As a homeowner, you may be coming to the end of your current mortgage deal and be looking for an improved rate. Who wouldn’t want that? With remortgaging, it’s very possible that you can achieve an improved mortgage rate. As a result of looking into getting an improved mortgage rate, you are likely to save money and reduce your monthly bills with some lenders. An improved mortgage rate may or may not be achieved with your existing lender or a new lender within the market.
Improve your home
Many people and homeowners have plans and ambitions to improve their home but capital can be difficult to access in tough economic times. However, remortgaging gives homeowners over the age of 55 to access equity built up in their home/property. This can be achieved through three possible options:
Borrow more money – This may be an option if you’re looking to borrow more money but remain on your current mortgage deal.
Remortgage with your current lender – Another way to improve your home may be to remortgage with your current lender.
Remortgage with a new lender – If you are struggling to renegotiate a preferred mortgage rate with your current lender, you have the option to explore options with a new lender.
Benefit from flexible mortgage rates
A further reason that homeowners choose to remortgage is to benefit from flexible mortgage rates. For example, if you have inherited large sums of money from a family member, you may decide that you want to overpay on your mortgage and pay it off sooner than initially anticipated. This can be achieved through remortgaging to suit your desired payment terms and lifestyle.
The fourth reason to remortgage is if you are considering equity release from your property. Equity release is a feasible option for homeowners that have plans and aspirations to perhaps start a business or buy a second property. Equity release is essentially releasing equity within your property that you have built up over the years to help you enjoy life for the here and now.
Your current deal is ending
If your current mortgage deal is ending, it’s always advisable to explore the current market/lenders to see if you can potentially remortgage and achieve a better mortgage deal. Usually, it’s recommended that you start to explore remortgaging options around 10-12 weeks before your current deal comes to an end. This will give you plenty of time to explore new lender options.
A further reason that you may consider remortgaging is if you have built up considerable debts. Remortgaging may give you the opportunity to consolidate your debts once and for all. Balancing the books and clearing long-standing debts can be liberating but it’s always recommended that you speak with a mortgage adviser to discuss your options before committing to remortgaging.
Is remortgaging right for you?
So, is remortgaging the best option for you? It’s certainly worth considering and exploring. Your first step is to get the expert and professional help you need from a trusted mortgage broker. Further considerations should be considering early repayment charges or exit fees you may face.