A remortgage involves refinancing a property you currently own. You may already have a mortgage in place or you may own the property outright, either way it would be classed as a remortgage.
You may look to remortgage for a number of reasons:
Better Interest Rate
Just like you change your car insurance or utility suppliers, you should always be shopping around to make sure you have the best mortgage deal. It’s estimated that around a third of homeowners are sitting on their lenders standard variable rate (SVR) and should therefore be exploring all their options to find a better deal.
By remortgaging you can completely overhaul the setup of your mortgage. You can explore shortening the term to pay it off faster (paying less interest in the long run) or extend the term for a few years to increase your disposable income every month.
Maybe your mortgage is currently set up on an interest only basis. Through remortgaging you could potentially change the mortgage to repayment, meaning at the end of the term your home is debt free.
When remortgaging you can explore borrowing more money against your home. Whether it is for home improvements, buying a second home or giving money to your children to buy their own home. Mortgage rates are often far more competitive than ordinary bank loans, however, keep in mind the debt is secured against your property. Make sure to speak to a specialist adviser when exploring your remortgage options.
A remortgage can also allow you to add someone onto the mortgage and deeds of the property, for example, if you get married and wish to add your new spouse.
Alternatively you can also take someone off the mortgage and buy them out of the property. In this scenario, you can borrow more on the mortgage to buy the person out at the same time as having the legal work done to transfer them off the deeds.
Both scenarios will usually involve extra legal costs, again, always consult an adviser to guide you through the process.