Reasons to remortgage
Remortgaging. The process of switching your existing mortgage to a new deal, either with your current lender or a different one, can offer numerous financial advantages. Whether you’re aiming to secure a better interest rate, consolidate debts, fund home improvements, or adapt to changing personal circumstances, remortgaging can be a great move to enhance your financial well-being. At Oportfolio Mortgages, our expert advisors are dedicated to guiding you through this process to ensure you get the right outcome for your situation. In this blog, I will go through the various reasons to remortgage and how to go about it with the help of a specialist remortgage advisor.
Reasons To Remortgage
Securing a Better Interest Rate
One of the most compelling reasons to remortgage is to obtain a more favourable interest rate. If your current mortgage deal is nearing its end, you might be automatically transferred to your lender’s Standard Variable Rate (SVR), which is often higher than other available rates. By remortgaging, you can lock in a lower rate, potentially reducing your monthly repayments and saving a significant amount over the life of your mortgage. For example, you might have had a fixed rate mortgage at 3.80% for the last 2 years, but when it is due to expire, you may automatically fall on to the lender’s SVR rate of 8%! But, your remortgage advisor could help you to secure a new rate a around 3.80% or below with another lender.
Benefit: Lower monthly payments free up funds for other expenses or savings, enhancing your overall financial flexibility.
Debt Consolidation
The pandemic and the rising cost of living over the last few years has meant that unfortunately, people have had to rely on loans and credit cards a lot more than they ever have before. This resulting debt can sometimes get a bit too much and possibly out of hand, and clearing them with regular income can become more and more difficult to do. Remortgaging allows you to consolidate these debts into a single, more manageable monthly payment, often at a lower interest rate. This approach simplifies your finances and can reduce the total amount paid in interest. Everyone’s circumstances are different, of course, so you should always consult with a mortgage advisor before going down this route.
Benefit: Streamlined debt management and potential interest savings contribute to improved financial stability.
Funding Home Improvements
Improving your property through renovations or extensions can increase its value and improve your overall quality of life. Remortgaging to release equity from your home can provide the necessary funds for such projects, enabling you to invest in your home without resorting to high-interest loans or eating away at your emergency funds.
Benefit: Investing in home improvements can lead to long-term financial gains and a more comfortable living environment.
Handling Divorce Settlements
In the event of a separation or divorce, home ownership can be a really difficult thing to get round. Remortgaging can facilitate the process of buying out your partner’s share of the property. This allows one party to retain ownership while providing the other with their equitable share, simplifying property division during a challenging time.
Benefit: A smooth transition of property ownership while ensuring fair financial settlements.
Buying a Second Property
If you’re looking to purchase a second home, whether as a holiday retreat or a buy-to-let investment, remortgaging can provide the necessary funds. By leveraging the equity in your current home, you can secure a deposit or even the full purchase amount for another property. You can also do things like a let-to-buy mortgage on your existing home, where you remortgage that property as a buy-to-let, release equity from it and purchase a new home.
Benefit: Expanding your property portfolio or securing a dream holiday home with accessible funding options.
Adapting to Life Changes
Life circumstances can change unexpectedly, whether due to career shifts, growing families, or changes in financial status. Remortgaging allows you to adjust your mortgage to better suit your new situation, whether by extending the term for lower payments or reducing it to pay off your loan faster.
Benefit: A mortgage that aligns with your evolving financial goals and lifestyle.
How Oportfolio Mortgages Can Help
At Oportfolio Mortgages, we understand that every financial situation is unique. Our expert advisors assess your current mortgage, financial goals, and available options to find the most suitable remortgaging deal for you. We handle the entire process, from application to approval, ensuring a smooth and hassle-free experience.
Get Expert Remortgaging Advice Today
If you’re considering remortgaging, our team at Oportfolio Mortgages is here to help. Contact us today for expert advice and personalised mortgage solutions tailored to your needs.
