When you first took out your mortgage, you might have signed up for a really good deal. But over time, the mortgage market changes, and new deals become available. This means there might be a better deal available for you now, which could save you hundreds of pounds.
Remember to check if there are any arrangement or product fees on any new mortgages you’re looking at, and if you’re ending your mortgage deal early, any early repayment charges from your existing lender.
Why should you remortgage?
While most people remortgage to switch their mortgage deal and save money, there are a whole bunch of other compelling reasons for switching products or lenders:
- You might want to take advantage of lower interest rates, meaning you’ll be paying less interest on your mortgage moving forward.
- Maybe you want to switch from an interest-only mortgage to a fixed rate repayment mortgage. Interest-only mortgages are where you pay off the interest, but not the loan. With a fixed rate repayment mortgage, you pay interest and the loan, and the interest rate remains the same throughout the term (versus a variable rate mortgage, where the interest rate can change).
- You might want a more flexible mortgage deal that allows you to make overpayments (additional payments above your monthly mortgage payment) without penalties as you chase that sweet mortgage-free life.
- Or you might want to unlock the equity in your property, meaning you benefit from the increased value of your home by releasing cash and taking on a new loan.