Remortgaging, or refinancing, is the process of switching your existing mortgage to a new lender or a new deal with your current lender. There are several benefits of remortgaging that homeowners should be aware of. In this blog, we will discuss some of the main benefits of remortgaging!
- Lower monthly payments- One of the most significant benefits of remortgaging is that it can lower your monthly mortgage payments. This is because you can take advantage of lower interest rates or switch to a longer-term deal that spreads your payments over a more extended period. By lowering your monthly payments, you may free up cash that you can use for other expenses, such as home improvements or paying off other debts.
- Access to equity- If you have built up equity in your home, you can access it through remortgaging. Equity is the difference between the value of your home and the amount you owe on your mortgage. By remortgaging, you can borrow against this equity and use the funds for home improvements, a new car, or other expenses. This can be a useful way to finance big-ticket purchases or pay off high-interest debts.
- Switch to a better deal- Remortgaging allows you to switch to a better deal with your current lender or a new lender. This can mean lower interest rates, lower fees, or more flexible terms. By shopping around and comparing different deals, you may be able to find a better mortgage that saves you money over the long term.
- Change in circumstances- If your financial circumstances have changed since you took out your original mortgage, remortgaging can help you adjust your payments to better suit your current situation. For example, if you have had a pay rise or received an inheritance, you may be able to afford higher monthly payments. On the other hand, if you have experienced a job loss or a reduction in income, you may need to lower your payments to avoid falling behind on your mortgage.
At The Loans Department, we will discuss all options with you in order to provide you with the best advice!
You will be called within an hour of submitting your enquiry to start your remortgage journey. Let’s hear from you today!
-The Loans Department