Most people aren’t aware that remortgaging is basically switching your current mortgage over to a brand new deal. You can do it with your existing mortgage provider or you can do it with a brand new lender.
You won’t be moving house and the new mortgage that you have is secured against your current property, which means that you can get what you need and you can do so much to your home with your new injection of cash.
The more equity you have in your current home, the more loan to value you have. You will then get to qualify for a better rate. There are plenty of reasons that people remortgage their homes rather than sell and rebuy elsewhere.
There are remodels and interest rates and plenty more where that came from to think about, too. Whether you go with your lender or you look at places like Strong Home to get a remortgage, you need to seek out your options.
Five Great Reasons to Remortgage Your House.
- Getting a much better interest rate is one of the top reasons to remortgage the house. Usually, it’s a fixed rate or a tracker rate, and it can last for between two and five years. You deserve to pay less if you can. If you can make sure that you manage the mortgage, you’re going to be able to get a great deal. Speak where you can to an expert and you’ll find you can get the best possible interest rate around.
- Making improvements. Do you have a kitchen to update? There’s nothing worse than needing to upgrade areas of the house and finding that you don’t have the cash to inject into it. If you remortgage, you give yourself the chance to make the improvements you want to make. And you don’t have to buy anywhere else.
- Better flexibility. You can get a much better, more flexible deal if you remortgage your house rather than move elsewhere. You could offset your current account or you can draw back on your savings if you want to. There are options.
- You can release some equity in the house. If you are in the fortunate enough position that your house has risen in value, you can draw some of your equity back out of it and use it for whatever you need. You have to remember that it is further borrowing on your house and you have to account for that later!
- Consolidation. If you have debts to pay, then remortgaging is the best thing that you can do. You can pool everything into one payment and make life easier for yourself. Plus, when you pay off debts, you free up the extra cash. You can use it for other things in the house. Then you can make improvements you might want to make.
Having a small business means that you may be able to borrow as a business. If you are afraid that your credit is an issue, be sure to check out this bad credit business loan guide.
Final Thought on a Remortgage
Remortgaging can be the best option if you are looking to do more with your equity – why not enquire today?