A mortgage is a long-term commitment, but you don’t have to be wedded to the Standard Variable Rate most people end up on after their first mortgage deal comes to an end. This is when remortgaging becomes important.
When you remortgage, you go back out into the market and see who will give you a better deal than you currently have. It may be a new lender, it might be the existing one. But what you’re doing is taking out a new mortgage to repay the existing one.
If you don’t do this, then once a mortgage deal comes to an end, you are put onto the Standard Variable Rate. This is likely to be several percent higher than the deals available, so you could save money by remortgaging.
You may also want to raise additional funds, maybe to carry out work to your home or to invest in property, you’ll often find that remortgaging is one of the most cost-effective ways of raising finance.
It’s sensible to plan at least a few months in advance of your mortgage deal coming to an end, so get in touch today to see how we can help.