The Benefits of Remortgaging: What You Need to Know!
If you're a homeowner with a mortgage, chances are you've heard about remortgaging. But what does it mean, and why might it be beneficial for you? Read further to find out what remortgaging involves and how it can save you money and how its smart to start thinking up to six mnths before your current deal expires:
What is Remortgaging?
Remortgaging is the process of switching your current mortgage to a new deal, either with your existing lender or a different one.
This can be done for various reasons, but the most common motivation is to secure a better interest rate and reduce your monthly payments.
In some cases, homeowners also remortgage to release equity in their property, helping them fund home improvements, debt consolidation, or other large expenses.
Why Remortgage?
Here are a few key reasons why remortgaging could be a smart financial move:
Secure a Lower Interest Rate: If interest rates have fallen since you took out your current mortgage, remortgaging could help you secure a better deal and lower your monthly payments.
Avoid the Standard Variable Rate (SVR): When your fixed, tracker, or discount mortgage deal ends, you’ll typically be moved onto your lender’s SVR, which is often higher. Remortgaging can help you avoid this jump in costs.
Release Equity: If your property’s value has increased or you’ve built up significant equity, remortgaging can allow you to access some of that money for home improvements, investments, or other financial needs.
Debt Consolidation: You may choose to remortgage to consolidate existing debts, potentially simplifying your payments and securing a lower overall interest rate.
Switch to a More Flexible Mortgage: Some homeowners remortgage to find a deal that better suits their changing financial situation, such as one with overpayment options or lower early repayment fees.
Plan Ahead: Remortgage Up to 6 Months Before Your Deal Ends
One of the most important things to remember is that you don’t have to wait until your mortgage deal expires to start the remortgaging process.
In fact, most lenders allow you to lock in a new deal up to six months before your current mortgage ends.
This is an excellent way to avoid being automatically switched to the SVR and ensures you secure a favorable rate while it’s still available.
Here’s how this early remortgaging process works:
- Research and Compare: Start by reviewing current mortgage deals and comparing interest rates and terms that suit your financial needs.
- Apply Early: Once you find a deal, you can apply and secure the new rate, even if it’s months before your current mortgage expires.
- Smooth Transition: Your new mortgage will take effect as soon as your current deal ends, so there’s no gap and no risk of moving onto a higher SVR.
How to Get Started
If you think remortgaging could benefit you, our expert mortgage advisors are here to help. We’ll guide you through the entire process, comparing the best deals tailored to your needs and ensuring you get the most competitive rates.
With our knowledge of the market and commitment to personalised service, we’ll help you determine the perfect time to remortgage and secure the deal that works best for your financial situation.
Let us take the hassle out of remortgaging so you can focus on what matters most.
Our Mortgage Services Department can guide you through the remortgage process, ensuring you secure the best deal without the hassle.
Contact us today or email us at mortgages@perrybishop.co.uk to explore your options and lock in a better mortgage rate up to six months in advance.
Remortgaging can save you money and offer greater financial flexibility, but timing is key. By starting the process early, you can stay ahead of rate changes and ensure you’re getting the best deal available.