Remortgaging simply means replacing your current mortgage with a new one. You may not even have to move lender to do it, though you certainly shouldn’t be afraid to move if doing so makes financial sense.
We can help you work out whether it will pay to switch onto a new mortgage deal.
Many mortgage lenders tie you into their best rates and they’ll charge you an ‘early repayment charge’ if you leave before the interest rate ends. First thing is to check if there is a penalty to exit your mortgage early.
If there is a penalty, you’ll need to find out exactly what this is. We can then have a look at what new deals are available and calculate whether any savings on the new mortgage will outweigh the penalty you need to pay.
If there is no penalty it is relatively straightforward. We can compare the interest rate you are currently paying against other rates on the market.
Should you remortgage?
A mortgage is a long term commitment – you might still be paying it in 25 to 30 years time. You should keep an eye on this area of your personal finances to make sure you’re always getting the best possible deal on it.
Depending on your circumstances, remortgaging could save you serious amounts of money. By not reviewing your mortgage regularly there’s a chance you’re missing out on the opportunity to reduce your repayments. Or, better still, get it paid off earlier than you planned.
Interest Rate Rises
We don’t have a crystal ball, so we don’t know if and when rates might start to increase. What we do know is that there are some tremendous rates on offer. If you’re sitting on the lenders standard rate you could be missing out on the opportunity to get a much better deal.