Remortgaging refers to when you take out a new mortgage on a property you already own. You can decide to either replace your existing mortgage, or to borrow money against your property.
Around a third of all home loans made in the UK are actually remortgages. So, this may get you thinking as to whether now is a good time to remortgage?
What is the process of remortgaging?
Having a mortgage is considered one of the biggest financial commitments a person will ever make. However, having the largest debt can produce the largest saving – sometimes £1,000s each year.
Are you the type of person who shops around for the cheapest car insurance deal or mobile phone contract? Then why not use the same trick by saving money on your mortgage. However, it is still important to know that there are pros and cons to remortgaging.
Why should you consider remortgaging in 2021?
Well firstly, The Bank of England are cutting interest rates to a record-breaking low of 0.10%. This means that mortgage payments will fall for many.
We always recommend remortgaging near the end of the introductory period before interest rates start climbing. Particularly around 3-4 months before the introductory period is over. For example, if you have a 5-year fixed mortgage, you should start looking to remortgage about 56-57 months through that 60-month period. It can take around 3 months to secure a mortgage form a lender, so the earlier you start trying to remortgage, the more successful you will be.
Given the amount of uncertainty in today’s economy, many homeowners are rightfully concerned about keeping up with their mortgage payments. Therefore, with the current historically low-interest rates, it might be a good idea to take advantage of these rates. There are two options when remortgaging your property; either locking in a standard rate interest, which means you pay less until interest rates rise again. However, if you lock in a fixed-rate mortgage deal, it can bring you peace of mind as you always know exactly how much money you must pay each month.
Are you now wondering whether or not you are in a position to remortgage your property? Well lucky for you we have a guide of reasons why you should consider remortgaging. If you fall into any of these categories, then don’t hesitate to get in touch and we can assist you in remortgaging your home.
If you were already considering getting a new policy, then now might be the perfect time to do it. If you wait too long, you might not be able to take advantage of these historically low interest rates.
