What is a remortgage?
A remortgage is the process of switching your mortgage to a different lender without moving home. It is also the ideal opportunity to review financial circumstances and ensure that what you put in place when you took out the mortgage is still the right thing for you. The choice of lenders may have increased since you took the mortgage so, it is always best advice to review your circumstances on a regular basis.
Most common reasons to remortgage?
- Your existing deal has already come to or is nearing its end and you will soon be placed on your lender’s standard variable rate (SVR) or, your existing lender is not offering you attractive terms to stay with them
- Reduce monthly repayments and gain extra flexibility on your mortgage term
- Borrow more money, possibly for home improvements or to pay off other debts
- You may benefit from a better rate if the value of your home has increased
- Change to a different type of mortgage
Should I always remortgage if any of the above happen?
Quite simply no!
In years gone by, lenders would allow customers to move on to the SVR which, was typically a higher rate than what was on offer elsewhere. This has changed somewhat in recent times with existing lenders offering new deals to existing clients encouraging them to stay. Before making a decision, you need to look at all the options. At Darren Littler Mortgages we will review your circumstances and always check with your existing lender to ascertain what they could offer you. If they are competitive and meet your requirements there is not necessarily the need to change lenders. We will review each option for you and compare staying with your existing lender against the other lenders in the market. There is no point changing lenders for the sake of it!
Wish to discuss finances?
Contact Darren Littler mortgages to discuss your mortgage or remortgage requirements. We will assist you in finding the best solution.