Nothing beats the feeling of finally securing a mortgage broker deal that secures your dream house and your budget. Most aspiring homeowners land on the best mortgage on their first try, but what if you find an even better deal than the one you’re currently signed up for?
For the past years, more and more people are discovering the wonders of remortgage. And if you’re reading this article, then you’re probably one of the lucky ones. Today, you will learn everything you need to know about remortgaging.
What is “Remortgage”?
In a nutshell, a remortgage is a process of swapping to another mortgage deal. You either request your lender for a new deal or move to a different provider. However, the new mortgage will still be issued for the same property.
Take note that the process of shifting to a different mortgage is just as crucial as when you chose your original deal. In fact, remortgaging may even do you more harm than good, especially if you’re tied to a fixed-rate type of deal. You could end up paying fines for your leaving your current deal on top of the mortgage payment that you have to settle for your new deal.
There are advantages and disadvantages to remortgaging but read on to find out whether it’s good or not for you.
When should you remortgage?
There are a lot of aspects to consider if you’re thinking about asking for a new mortgage deal. Most people do this to lessen their liabilities, but here are other reasons to make the switch:
- Your existing mortgage deal is about to expire.
- The interest rates are rising against your favor.
- To consolidate all of your outstanding balance into one payment.
- Save up for home improvements.
- To get a better interest rate.
Gain more flexibility (e.g., overpaying).
When should you NOT remortgage?
Indeed, remortgaging is often the way to go if you want to save some cash. You can always search for remortgage deals whenever you feel like it, but you have to realize that there are some instances where it is better for you to remain in your current mortgage.
Your mortgage debt as of the present is small.
Freeing yourself from your current deal will cost you more money than keeping it.
Your financial status has changed.
You’re already having credit complications with your current deal.
Now that you know the advantages and disadvantages of remortgaging deal, you now have to weigh things up and assess whether your decision will be beneficial to your current circumstances. Always re-evaluate every deal you come across, so you’ll have better chances of landing on a mortgage that is perfect for you visit here.