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Updated by 1st UK Mortgages on Feb 13, 2018
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Top Five Reasons to Consider Remortgaging Your Home

Remortgages account for about one third of the mortgage market in the United Kingdom today. A Remortgage is utilized when you want to take out an additional mortgage on a home you already own, for purposes of getting a lower mortgage rate, or even extra funds for household emergencies.

Here are a few reasons why you should (and shouldn’t!) remortgage your home.

1

You may want to remortgage your home to save money.

This can be large sums of money, depending on a variety of different favors. Is your current mortgage dal about to end? Typically, good mortgage deals last between two and five years. This is the typical offer on a fixed rate, or discounted mortgage.

2

You need a better mortgage rate.

When you initially signed into your mortgage, you may have received the best deal possible on the market at that time. Perhaps there is an early repayment charge, or even an exit fee. You are now ready to negotiate a new mortgage with new terms that suit your financial needs at this point in your life.

3

Your home has increased in value, and you’d like to take advantage of lower rates.

If your property value has risen a lot, you may be in a lower loan-to-value band, and eligible for a much lower rate than you are currently paying.

4

You don’t want to deal with increasing interest rates.

Who does? But you need to fully understand what an increase in interest rate really means. If the Bank of England base rate is predicated to go up, it may affect your mortgage payments, depending on the type you are currently utilizing. If you simply notice that newer buyers are coming in a higher interest rate than you are, don’t panic – this is their rate, not yours, and it will most likely not affect your mortgage interest rates.

5

You’d like to make an early payoff, but there are consequences with your current mortgage company.

Believe it or not, there are some mortgages that penalize you for paying off the loan early. Before you sign into a mortgage, ensure that you look over the terms for early repayment or exit fees!

These are just a few simple reasons you may consider remortgaging your home. Filing for a remortgage is like applying for your first mortgage, so those individuals with less than perfect credit may encounter issues getting approved. There are many lenders inthe UK that will work on bad credit remortgages, regardless of credit score. Check out https://www.1stukmortgages.co.uk/bad-credit-remortgages/ to learn more about how this works.