The benefits of remortgaging: Is it time to reassess your mortgage

If you’ve been a homeowner for a while, you might have heard the term “remortgaging” pop up now and then. But what exactly does it mean, and is it worth considering? In this blog, we’ll break down the benefits of remortgaging in a way that’s easy to understand and maybe even inspire you to take a closer look at your current mortgage. Let’s dive in!

What is Remortgaging?

Simply put, remortgaging means switching your current mortgage to a new deal, either with your existing lender or a different one. This can happen for a few reasons: maybe you’re looking for a better interest rate, wanting to release some equity, or just wanting to change the terms of your loan.

Why Should You Consider Remortgaging?

1. Lower Your Monthly Payments: One of the biggest reasons people remortgage is to get a better interest rate. If rates have dropped since you first took out your mortgage, you could save a bundle each month. Who wouldn’t want a little extra cash in their pocket?

2. Release Equity: If your home has increased in value, you might have built up some equity. Remortgaging can allow you to access that equity, which you can use for home improvements, paying off debt, or even funding a big purchase like a new car or a holiday.

3. Switch to a Fixed Rate: If you’re currently on a variable rate mortgage and feeling a bit anxious about potential rate hikes, remortgaging to a fixed-rate deal can give you peace of mind. You’ll know exactly what your monthly payments will be for the duration of your fixed term.