Deciding to remortgage your current home is a big decision, and as such, deserves some real thought and planning ahead. In this article, I am going to break down the reasons you should remortgage your home and counter my own arguments with the reasons you shouldn’t!
I’m hoping I can get you into the correct mentality in order to make a decision, and as always, our advisers are only a phone call away to give you great advice, you can book a call here.
Why you should Remortgage
Your current deal is coming to an end
The main reason you should be researching whether or not it’s the right time for you to remortgage, is to save money. When your current mortgage comes to an end, your lender will put you on their standard variable rate.
This will more than likely be higher than your current interest rate. Start looking for a better deal before your current mortgage comes to an end so you have some options when it’s time to remortgage!
Your mortgage doesn’t fit your circumstances any more
If you are a contractor or freelancer, your circumstances can change at the drop of a hat! Maybe you’ve increased your revenue over the past few months, and you want to make extra payments to your mortgage but your current deal won’t allow it.
Perhaps business has slowed down a tad over a holiday period and you need to miss a payment or you’d like to lower your monthly fees. Whatever the case is, these changes in circumstances may mean its time for you to start shopping around for a deal that fits you better. If you’d like our assistance, I assure you we will be able to give some clarity to your situation, you can book a free consultation here.
You want to make some home improvements
You’ve gone to your current lender and asked if you can borrow some extra money for some home improvements and they’ve just flat out said no…What options do you have?
Many people remortgage to gain some extra cash to start improving their home. It’s seen as a great option as any major improvements will increase the value of your property in the long term. Some lenders see this as a savvy investment, but be prepared to provide proof that you have spent the money on the home improvements.
Why you shouldn’t remortgage
You’re on a great deal already
Despite the potential for you to be able to save a bit of money when considering to remortgage, this may not be the be all and end all. If you are already on a great deal, that fits your circumstances and is flexible enough for you to get what you need; even if it’s coming to an end, why would you switch?
Ultimately you have to decide whether saving some money trumps the other great aspects of your current mortgage, weigh up the pros and cons and see if it’s worth it.
Your mortgage is relatively small
When remortgaging, there will always be fees to pay somewhere down the line, it doesn’t matter which lender you are considering. Once your loan falls below a certain amount, it may not even be worth switching because you won’t be saving enough.
Some lenders refuse to take on mortgages that are below a certain amount, meaning the smaller your mortgage is, the bigger fees you’ll have to pay in order to make it worth it for the lender.
It’s just bad timing
With any industry, rates rise and plummet on a whim and mortgages are no exception. Even if you’ve discovered after a few years that your mortgage is not right for you and your family and you want to make a switch, it may be wise to hold off a bit if current rates are not favourable.
This can be difficult to gauge if you are on your first mortgage, that’s what we’re here for. If you are looking for a switch and you’re not sure whether it’s the right time or not, we are happy to answer any questions you may have. Book a free consultation now.
I hope this article has given you a small insight into remortgaging, I know the whole mortgage process in any case can be daunting, which is why I love writing these posts.