So Why Should I Consider a Remortgage? For Many Reasons! Here’s a Few…

There are many reasons why people may look to remortgage their home, but it seems that many do not review their mortgage on a regular basis, which can be very harmful to your financial situation. Here, we look at the reasons behind remortgages and how they can improve your cash flow.

The reality is, however, that changing your mortgage arrangements could actually benefit you.  With current concerns over inflation and job security, it is crucial that you take care to look after your finances.  And, with literally hundreds of mortgage deals on the market there may well be a scheme that is better for you; whether that is with your current lender or with another provider.

The first thing that you need to do is look at the mortgage that you currently have. Check the interest rate, the amount you paid in fees at the beginning and any other fees that were associated. If you still have your mortgage quote from when you took it out, have a look at this.

You need to assess whether or not what you are paying when compared to other deals in the marketplace seems competitive. To do this you’ll have to compare your current deal with others out there.

It is very rare in modern times that people stay with the same lender, on the same mortgage product for the full term. People now like to shop around to get the best deal and to save the most money in terms of interest.

If you deal directly with a lender, you need to have something to work on, so it might be an idea to go to your existing lender first to see what deals they can offer. You can then use this to ‘play them off’ against each other and see if the new lender will beat your existing lender’s offer.

Over recent years; many British homeowners have consolidated expensive unsecured debts into their mortgage. Credit cards often charge rates of 15 to 20 per cent and so you can end up paying a huge amount of interest on your cards if you’re not the sort of person who pays their credit card balance in full every month.

Consolidating debts using a remortgage can also help to reduce the interest rate; A typical credit card these days is around 20% in interest, whereas a mortgage can be on 5-7% so you can see quite clearly that you can save a lot of money in the short term by consolidating.

An additional loan or remortgage can also help you if you need an injection of cash in order to start a new business. As long as you have some equity in your property you may be able to release some of your home’s value to provide the money you need for your venture.

Experts suggest that you should review your mortgage arrangements at least every four to five years. Often, you will find that switching your home loan from one bank or building society to another can save you a significant sum as well as giving you the opportunity to borrow additional funds to start a business or to consolidate your debts. Don’t automatically be loyal to your current lender and always shop around to find the very best deal.

404 Error

Sorry, this page doesn't exist.
Please check the URL or go back a page.

404 Error. Page Not Found.

Leave a Comment

* are Required fields