- Oct. 12
- Richard Parker
Six Great Reasons to Remortgage Your Home
Life is full of milestones and it’s these milestones that may make you feel like it’s a good idea to remortgage your house. Whether you are looking to save money or you want to free up your cash to spend on something big, your ability to remortgage the house is going to depend on your money in the house already and you can click here to see what you can afford.
Let’s take a look at six brilliant reasons to remortgage your house.
Your Current Mortgage Deal Is Ending
You should be keeping an eye on the money you are spending on your current mortgage, and then you’ll see the deals around when you watch for them. Nearing the end of a fixed deal may mean that your lender puts you on a higher interest rate mortgage. If you remortgage at this stage, you’re going to have a better interest rate than ever before.
Your Home Value Has Grown
Over time, the value of your property is going to rise and when it does, you could be eligible for a lower rate interest mortgage than you are getting right now. The loan to value ratio changes as your home increases in value. It’s important to protect yourself from the base rate rises from the bank, and if you remortgage, you can lock in a brand new deal that works much better for you.
You Have Something Big to Pay For
Whether it’s a wedding or a vacation, a big purchase is covered with the equity you get from your house. You can basically borrow from yourself, which is huge for things that you want to have but can’t save for separately. Your equity is going to pay for large purchases as you need them.
You Can’t Currently Overpay
Some lenders won’t let you overpay your mortgage, and if you are in the fortunate position to be able to overpay but you find that you are not allowed to, then you need to remortgage and switch lenders. If you swap lenders, you can start overpaying your mortgage and pay it off far sooner than you had planned to before.
Freeing up Some Equity
When you’re in a pinch, you can free up some equity for emergencies and pay off debt elsewhere as well as funding college fees as you need to. You can have your current mortgage assessed with a new lender, who can help you to save some money on it over time.
Lastly, a good reason to remortgage your home is to use the money and invest elsewhere. You can put the money you save on your mortgage into a deposit for a second home, and investing your money back into a new mortgage means that you could double deal! Getting two great deals on your interest is so important, and you can make sure that your mortgage deal is a great one when you invest, too. Using the right calculators will help you to do just this, and you can ensure that you are making the right payments, too!