Remortgaging is something a lot of people do at least once in their lives, and sometimes more than once. Since your property is a big asset, you can often take advantage of this and, with the right advice, a remortgage deal could be an ideal solution to a variety of different challenges. With that in mind, here are some of the best reasons to remortgage your property.
5 Reasons To Remortgage Your Property
Reduce Your Monthly Bills
For many of us, our mortgages represent our single largest monthly expense; therefore, any reduction in that payment can have a significant positive impact on our financial situation.
By speaking to your current lender or by shopping around for a better deal, you might find you can save a significant amount of money by remortgaging. Don’t assume the deal you’re currently on is the best one for you.
However, neither should you assume that remortgaging is the best option when releasing equity might work better. Always do your research with the help of experts like Reed Pirain to ensure you’re making the right choice.
You Want To Borrow More Money
If you want to borrow more money, remortgaging is a good idea. Mortgage companies will let you borrow more money for things like home improvements, saving up for a down payment on a buy-to-let property, going on vacation, buying a car, etc. If you want to borrow more money, remortgaging your home could be a cost-effective way to do it. Don't forget that lenders will want to know what the money will be used for, and you'll need to look at all fees to make sure it's the best way to borrow money.
For many of us, our mortgages represent our single largest monthly expense; therefore, any reduction in that payment can have a significant positive impact on our financial situation.
By speaking to your current lender or by shopping around for a better deal, you might find you can save a significant amount of money by remortgaging. Don’t assume the deal you’re currently on is the best one for you.
However, neither should you assume that remortgaging is the best option when releasing equity might work better. Always do your research with the help of experts like Reed Pirain to ensure you’re making the right choice.
You Want To Borrow More Money
If you want to borrow more money, remortgaging is a good idea. Mortgage companies will let you borrow more money for things like home improvements, saving up for a down payment on a buy-to-let property, going on vacation, buying a car, etc. If you want to borrow more money, remortgaging your home could be a cost-effective way to do it. Don't forget that lenders will want to know what the money will be used for, and you'll need to look at all fees to make sure it's the best way to borrow money.
Your Mortgage Deal Is Ending
No matter what, if your mortgage deal is ending, this means you need to find a new mortgage. Most of the best mortgage deals only last for a few years and come with perks like fixed rate, tracker, or discount mortgages. But because the market is always changing, when your time is up, your lender will put you on its Standard Variable Rate (SVR). This is likely to cost more and have a higher interest rate than other options. So, it might be time to refinance to a lower rate. Just make sure you start looking about three months before the end of your current mortgage deal.
You’re Going Through A Divorce
If you are getting a divorce or breaking up with a partner with whom you co-signed a mortgage, you should think about splitting your finances. Most of the time, the shared home is the biggest thing that needs to be split, and you have a few options.
One option is to sell the house, pay off the loan, and split any profit. Another is to let your partner buy you out. But if you want to stay in the house, you will have to pay the whole mortgage and may have to buy out your partner. If that is the case, you should speak to your lender about what options you have.
No matter what, if your mortgage deal is ending, this means you need to find a new mortgage. Most of the best mortgage deals only last for a few years and come with perks like fixed rate, tracker, or discount mortgages. But because the market is always changing, when your time is up, your lender will put you on its Standard Variable Rate (SVR). This is likely to cost more and have a higher interest rate than other options. So, it might be time to refinance to a lower rate. Just make sure you start looking about three months before the end of your current mortgage deal.
You’re Going Through A Divorce
If you are getting a divorce or breaking up with a partner with whom you co-signed a mortgage, you should think about splitting your finances. Most of the time, the shared home is the biggest thing that needs to be split, and you have a few options.
One option is to sell the house, pay off the loan, and split any profit. Another is to let your partner buy you out. But if you want to stay in the house, you will have to pay the whole mortgage and may have to buy out your partner. If that is the case, you should speak to your lender about what options you have.
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