Why switch your mortgage ?
In today’s competitive market, many borrowers choose
to switch their mortgage every few years in order to take
advantage of the new rates on offer. In simple terms,
remortgaging involves switching your current mortgage
to a new deal, arranged either with your existing lender
or with a new lender.
Reasons to switch mortgages
could be:
- To save money
If you’re paying your lender’s Standard
Variable Rate (SVR), it’s highly likely that
your existing lender will offer a better rate on other
available products. This could save you money on your
monthly repayments, or to repay your mortgage sooner.
- To raise money
Rises in your property’s value means you could
increase your mortgage to help pay for major outgoings
such as a wedding or your child’s university
costs, you may also wish to raise capital to buy a
second home here or abroad.
- Debt Consolidation
Remortgaging can allow you to release some of the
equity you hold in your home and consolidate other
debts, such as a car loan or credit cards, which can
attract higher rates of interest than that of your
mortgage.
What are the steps involved?
Remortgaging is now easier than ever. With lenders competing
for your business there are many attractive rates on
offer. Normally there are costs involved such as solictors
and valuations, but there are many deals that pay for
this on your behalf, so to remortgage can cost you nothing.
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