Remortgage

Remortgaging is in simple terms the process of switching your existing mortgage to a new one, usually with a different lender. To remortgage you secure a new mortgage against your property and use the money from this to repay the previous existing mortgage, effectively transferring it. Changes in base interest rates and introductory offers can often mean that the rates available at present are lower than those agreed for your mortgage when you took it out, remortgaging is the key to allowing you to take advantage of lower interest rates and better mortgage deals.

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Reasons to remortgage

There are quite a number of financial advantages as to why you should remortgage. Below are listed what we at Mortgage-Online.gb.com believe to be the most important:

Reduce your outgoings and save money!

Should you wish to switch to a mortgage with a lower interest rate you could effectively save a substantial amount of money for the future. Considering the large quantity of money involved, and the time over which the interest is incurred, it is relatively easy to spot the saving you can make from the small reduction in the interest rate.

Essentially your monthly outgoings can be reduced through remortgaging by applying for a lower rate mortgage than your current one, and by increasing the amount of time (mortgage term) over which you pay back the loan. By spreading your repayments over an extended period of time will in turn reduce your monthly payments.

Debt consolidation - All your debts into a single payment plan!

Because mortgage interest rates are some of the lowest around, compared with that of any other type of loan, you can transfer all other debts to your mortgage. Advantages include; only having to manage one loan, saving money by not paying interest on other loans and generally making life easier.

Equity Release - Releasing the positive equity in your home

As time goes on, everything increases in price, from a packet of crisps to a pint of beer. Its what’s known as inflation. This includes the value of your house. As the value of your home has increased in value since the time of applying for your mortgage it will have gained something called ‘Positive Equity’. This means that the current market value of your home is greater than its current mortgage value. By releasing this equity you are able to borrow money at an even lower interest rate. Loan companies have devised special ‘Equity Release Plans’ that can provide an alternative/extra income for when you retire.