What is a remortgage?
Remortgaging involves switching your current mortgage deal, either by moving to another lender or by changing your arrangements with your current lender. It is quite common for borrowers to consider doing this when their fixed, discounted or introductory tracker rate expires. With Bank of England interest rates still low, and with recurring rumours of expected rate rises in the near future, many people have over recent months seen this as an opportunity to lock in a low rate, protecting them from any future rate rises.
Saving money is the primary reason to remortgage, by avoiding being moved to the standard variable rate of lenders. The variable rate is usually higher than fixed rate offerings from lenders, so it usually it is a good idea to avoid being moved to it.
Another reason may be to adjust the term remaining. If your financial circumstances are different from when you first took out the mortgage, you may wish to increase or reduce monthly repayments to decrease or extend the years left on the mortgage.
A further reason may be to utilise the equity in your property for further lending to assist in home improvements, which will help boost its value. Borrowing against your property will commonly be at a much-reduced rate than any credit card or unsecured loan so can also be useful for debt consolidation.
Why SMC Financal?
SMC can assess your current arrangements and compare them across the whole of the market. By doing this, we can ensure that you have a mortgage which fits your circumstances and that you are not paying more than you should be. We are qualified and experienced to advise on all types of mortgages such as residential, buy to let, help to buy and lifetime mortgages.
We are also different in that we offer a full financial planning service to tailor your personal circumstances to match your overall objectives such as planning for retirement, protecting your income, and maximising the returns on your available savings and investments.