Remortgaging your home can provide you with notable benefits that you’re not getting with your current mortgage. In fact, it can make a lot of sense, so much so, we’ve compiled a number of reasons you should remortgage your home.
A lot of people have their mortgages for a number of years now and in the meantime the cost of money has fallen significantly. Lower interest rates are a sure fire reason to change your mortgage as you can save a lot of money by doing so. For example if you make repayments on a mortgage of $1,596.10 or £1000 on a SVR of 7.5%, you could save almost £170 a month. That’s a lot of money extra at the end of each month and a notable amount at the end of a year.
Fixed and Variable
If you have a variable interest rate you may consider Remortgaging at a fixed rate as this can help you weather the storm if rates go up. Alternatively, if you wish to risk it with a variable rate you can also save. It depends on timing and whether rates go up or down.
Of course, one of the main reasons a lot of people tend to remortgage their home is down to home enhancements or improvements. If you want to renovate, Remortgaging can give you the money to do so. Many mortgage companies provide those that want to remortgage for these reasons with lower rates as they may not remortgage otherwise. However, you can put this remortgage to work as it can be a great way to improve the worth of a home. If you buy that property that needs to be renovated and have enough equity, it can work well. Alternatively if used for the sake of improving the energy efficiency of a home it can not only add to value, but also save on the cost of energy bills.
If you’ve a lot of debt and can’t pay off your mortgage, then Remortgaging can be a great way to avoid financial issues and even problems such as foreclosure. Remortgaging can provide you with a lower rate or a longer term for payment and by doing so cut the cost of the mortgage and so allows you more financial freedom. It is often a better option than home selling or some of the other issues that can come from financial problems.
The cost of buying a new home is spiralling and though that may not impact on people with plenty of equity in their home, it does their children. Being able to offer your children some money through remortgaging to put a down payment on a home can be a good reason to remortgage. It allows them to get on the property ladder and helps your family financially.
Remortgaging is a great way to get access to money that’s in your home and often allows you to save money too. It’s certainly worth considering and if you can get a competitive rate that works for you can be a great benefit.