When should you consider a remortgage?

Your current deal is coming to an end, or has already ended

Usually mortgage deals last between 2-5 years. When a deal ends you will fall on to your lenders standard variable rate SVR.  Therefore your monthly payments will usually increase heavily.  It’s best to start looking at new deals to remortgage 3-4 months before the current deal ends to ensure you don’t end up on the SVR.

Your can get a better rate

Leaving a deal you are tied tied in could mean you’ll have to pay an early redemption charge (ERC). It still may be in your interest to change the deal if it saves you considerable amounts over that period. Do the maths and work out how much the new mortgage will save you over the long run, and is that enough to be worth paying the ERC.

Your property has increased in value dramatically

Sometimes your property may have increased in value considerably.  This means your loan to value (LTV) is now lower, so you may get a better rate.  we can do the maths and consider if it will be worth it as you’ll have to pay that ERC.

You are currently on an interest only mortgage and don’t have a plan to repay

In this case it can be beneficial for you to switch to a repayment mortgage in order to get the balance paid off during the term.  Your current lender will probably be happy to let you switch without remortgaging, but their rates may not be as good on repayment.  So speak with a Mortgage Broker to see what every lender is offering to find the best remortgage deal.  It will only involve a little math to work out if it’s worth it.

You want to borrow more money

Perhaps you want to build a conservatory or buy a caravan.  Ask your current lender if it’s possible to borrow more money first before considering remortgaging. However if they say no it may be best to consider remortgages to a new deal in order to get that money you need.

You should always consider other methods of financing.  Adding to your mortgage can be very costly in the long run in terms of interest payable.  You may find it’s better to take out shorter term finance options and pay less interest.  We can help you find them.

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