Why Remortgage your House?
Advantages of remortgaging your house include:
- Consolidating all of your existing debts into a more manageable arrangement
- Reducing your monthly repayments
- Releasing money to spend on other things
- Potentially saving money by finding a lower remortgage rate
- Being able to remortgage your house despite having problems with bad debt, CCJs, mortgage arrears etc.
A remortgage can also help by enabling you to combine all your unpaid debts into one and lowering your monthly outgoings. When choosing a remortgage, take care to fully investigate the interest rate and fees which might be attached.
Remortgaging a house or similar property may potentially provide you with a number of useful benefits that could significantly improve your financial situation. When searching for an appropriate remortgage deal, it is always recommended to research the market as much as possible for mortgage comparisons, in order to find the best offer available.
For many borrowers, the decision to remortgage a house may come about simply from a desire to find a better deal on their current mortgage agreement.
Customers with a current mortgage may also wish to remortgage their house for debt management purposes. A remortgage can be used to pay off all existing debts and consolidate them into a single, more manageable payment.
However, it should be remembered that ending a current mortgage deal before it has run its course may have several drawbacks.
If for example, the customer wished to switch to a new provider entirely, they may be subject to a number of extra costs, so it therefore important to properly assess the viability of a remortgage before switching.
In many instances, new lenders may require that customers conduct a valuation of their property before proceeding with a new agreement. There may also be early exit penalties for ending a policy early, borrowers may also be subject to a new arrangement fee when remortgaging a property.
The only exception to these costs may be a ‘no fee’ remortgage deal, although interest rates may be slightly higher compared to many other types of agreement.
The following are some examples of other interest deals that may be offered to customers remortgaging their house:
- Fixed rate mortgages
- Tracker mortgages
- Discount mortgages
- Variable rate mortgages
If you are searching for a suitable remortgage on your house, feel free to look at our mortgage comparisons table for more information on the best remortgage deals that are available.