Remortgaging your home can sound complicated and a little daunting. Although it may take a little research and sometimes a bit of your time, the financial rewards for you and your family can make it well worth while. Of course in order to go to the trouble of refinancing your mortgage you’d have to search for remortgage lenders who are able to give you what you want – and they are out there.
Everyone’s needs and situations are different – whether looking for a standard remortgage, an adverse credit remortgage or some type of consolidation remortgage to help with credit card debt, etc. So it is important to decide what is most important for you and work on finding a lender who can offer you what you want, and who you feel comfortable working with on a possibly long term basis.
Debt consolidation can be a big motivator for remortgaging. This can allow you to use the equity in your home to borrow money to pay off various other debts. Credit cards, store cards, personal or vehicle loans can carry high interest rates that prevent you getting rid of them quickly. By consolidating these loans into your mortgage you can take advantage of a lower interest rate. This also has the big advantage of meaning you only have to make one easy payment instead of several to various creditors. For those that are having credit trouble, special types of bad credit remortgages are available, but always be careful when getting more loans while having credit issues.
With changes in the economy interest rates can change. When you originally sign up for your mortgage the rates may have been higher than what is on offer at the moment. Usually the only way to secure a lower rate is through remortgaging under a new agreement. Some experts suggest a 1% decrease is worth remortgaging for, while others would hold out for a decrease of 2% or more. However ensure you are not prematurely signing a new agreement without making sure all the other terms suit your situation as well.
If you are currently stuck in a mortgage with a variable or floating interest rate then remortgage lenders could help you move to a fixed interest rate. If you are trying to save or have other bills piling up you don’t want to get stuck with an increased mortgage payment one month as interest rates change. The stability and consistency of a fixed interest rate suits most people best so looking for a new remortgage lender might just be what you need to do in finding a new rate.
Perhaps you have had an increase in your income and would like to increase your mortgage payments. Remortgage lenders could arrange this which would also reduce the term of your mortgage. Reducing the term of your mortgage means you will inevitably pay less in interest charges. On the other hand if you have had a considerable decrease in your income you may wish to remortgage to lower your monthly payments. This would extend the term of your mortgage and mean you pay more interest in the long run; however it may be what you need to do to get by in the short term.
If you have been paying your mortgage for a while and the equity you hold in your home has increased quite a bit, you may be eligible for discounts or better deals on mortgage insurance. Usually this insurance is a portion of your monthly payments so reducing it will mean reducing your monthly payments, possibly an easy way to save cash that your current lender probably wouldn’t tell you about.
Whether you are looking to have more money in your pocket right now, or you want to get out of debt quicker, remortgaging could help you achieve either. You could see benefits for yourself and your family within a month of refinancing. By discussing some of these options with your current lender and also with remortgage lenders you’ll ensure you really are getting what you want – not what they want.