Remortgaging

Unlike dogs and marriages, mortgages don’t have to be for life! Provided you’re not tied into your existing mortgage it’s perfectly legitimate for you to court other lenders, check out more favourable rates, and generally play the field! And if you are tied into your existing mortgage it’s still a good idea to keep your options open – some lenders are so anxious to secure your business that they’ll even take care of the redemption charges for you.

Remortgaging is the ultimate consumer power-play. It helps to ensure that mortgage lenders give as much attention to existing clients as to attracting new ones; and that means better deals for everyone. Certainly the threat of client remortgaging does keep lenders on their toes and should, in theory, make them more amenable to discuss improved deals and better benefits in the face of increasing competition and better than ever bespoke mortgage deals.

If your mortgage lender isn’t giving as good a deal as they should be, there are at least three good reasons to make the switch. After all, there’s no reason why you shouldn’t take advantage of all those new sign up incentives with another lender, particularly if you find you’ve been switched to a standard variable rate that you didn’t choose for yourself. It’s an old story; customers are finally getting savvy to it and they’re dropping out of their existing mortgage schemes in droves. So here’s reason number one…

Remortgaging saves you money on your mortgage – month in, month out. Simple as that. So when should you switch? If any of the following apply: if you’ve been shifted onto a variable rate at the end of your discounted sign up scheme; if your variable rates change for the worse; if you’re in any doubt that you’re simply not getting the fullest flexibility, the most tailored care or the best interest rates (just a quarter of a per cent is enough to make a difference.) If you don’t do anything about it quickly, you’ll be losing money hand over fist. Don’t do anything for a few months and you’ll be haemorrhaging cash in the sort of quantities that really will make you sick. Don’t consult a doctor; see a broker…

Another hugely popular reason to remortgage is to free up the untapped equity in your property. That’s because remortgaging doesn’t just net a better deal, it can significantly improve your spending and investment power too. With house prices seemingly rising all the time, many home owners are cashing in on positive equity. Assuming the market value of your property is greater than the outstanding mortgage on your property, you can cash in on it too. Find out for yourself just how much more you can make of your existing resources…

The next best reason to remortgage is to make things a bit easier on yourself. Remortgaging can make for a more flexible mortgage plan, giving you the opportunity to take payment breaks and vary the amount of your monthly repayments; particularly if you move over to an offset mortgage scheme. Offset mortgages are a popular choice among cash secure borrowers who want to make more significant inroads into their mortgage debt. Remortgaging to take advantage of an offset mortgage is the simplest way to whittle your mortgage down to size – more quickly and more cost effectively than ever before…

Whatever route you take, you’ll find plenty of lenders who’re willing to undertake all the paperwork and take care of any and all solicitor’s fees – that should make you feel wanted! If it doesn’t, keep shopping around until you find a scheme that does, and a lender who will. Remember, it doesn’t matter how good the sign up schemes are, if you’re going to be tied in to a long term deal that’ll seem a little less attractive with every passing year. But if you can get the right balance between incentive and ease of opt out, then you’ve got the very best reason of all to remortgage.

Remortgaging shouldn’t ever be a last resort; it’s a first resort for better deals on your mortgage and better prospects for your future. Don’t just love the house you’re in, love the mortgage you’re in.