Why would I want to remortgage?

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Remortgaging is the process of arranging a new mortgage on the property that you own. It can be used to replace a mortgage with one at a better rate of interest, or it can be used to borrow more money.

Last April, British lenders lent a record £4.7bn in remortgage loans, which was a 36% increase on the figures in March. The rise is partly due to lower interest rates; the average interest rate in February 2016 was 2.51% and this fell to 2.49% in March.

One of the main reasons to remortgage is to switch to a lender offering a lower rate. Many people take out a mortgage at a low introductory rate which lasts from two to five years. When the deal comes to an end, the interest can rise sharply. It then makes sense to look for a cheaper rate.

If the value of their house has gone up by a large amount, then a borrower may want to take on extra money for purchases like a new car or property repairs. An existing mortgage lender may not allow this, but an alternative lender may offer a remortgage loan for high-value items.

A fee will usually be charged for paying off an existing mortgage, and this needs to be taken into account when considering remortgaging.

Talk to a mortgage broker for advice on the best deals and the advantages of mortgage and income protection so that your home is safe if you become unemployed due to unforeseen circumstances.

Sources:

Money Saving Expert

Why would I want to remortgage?

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Remortgaging is the process of arranging a new mortgage on the property that you own. It can be used to replace a mortgage with one at a better rate of interest, or it can be used to borrow more money.

Last April, British lenders lent a record £4.7bn in remortgage loans, which was a 36% increase on the figures in March. The rise is partly due to lower interest rates; the average interest rate in February 2016 was 2.51% and this fell to 2.49% in March.

One of the main reasons to remortgage is to switch to a lender offering a lower rate. Many people take out a mortgage at a low introductory rate which lasts from two to five years. When the deal comes to an end, the interest can rise sharply. It then makes sense to look for a cheaper rate.

If the value of their house has gone up by a large amount, then a borrower may want to take on extra money for purchases like a new car or property repairs. An existing mortgage lender may not allow this, but an alternative lender may offer a remortgage loan for high-value items.

A fee will usually be charged for paying off an existing mortgage, and this needs to be taken into account when considering remortgaging.

Talk to a mortgage broker for advice on the best deals and the advantages of mortgage and income protection so that your home is safe if you become unemployed due to unforeseen circumstances.

Sources:

Money Saving Expert

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