Why remortgage?

There are a number of reasons why homeowners choose to switch their mortgage to a different deal with their existing lender or even a new lender altogether. If you are a current homeowner you may consider remortgaging your property for one of the following reasons:

Simply put, if you're paying your lenders Standard Variable Rate (SVR) it's likely that you could be offered a better rate and greater flexibility by moving to a different mortgage plan.

By switching the plan that you are on, you could save money via lower monthly repayments or end up repaying your mortgage sooner.

Of course if your lender is unable to offer you better rates or flexibility, switching to a different lender could help you make considerable savings.

A rise in your property's value or an increase in your earnings means you could increase your mortgage to help pay for major outgoings such as a wedding or university costs.

A lot of the time it can actually pay dividends to remain in your current property and make improvements or build an extension, which you can finance by remortgaging your house. This is a popular choice for modern homeowners when faced with the option of moving or improving.

Remortgaging can allow you to release some of the equity in your home so you can consolidate other debts, such as loans and credit card bills whose interest rates are higher than that of your mortgage.

A fee of between 0.35% and 0.5% of the loan amount is payable on completion. Typically this will be £400.