Remortgaging: why remortgage?

In today’s society there are many reasons for remortgaging. For example, needing to borrow additional funds, to improve your home or for some other purpose, perhaps your mortgage doesn’t fit your lifestyle anymore due to a change of employment or a promotion, or simply your property has gone up in value and you want to take advantage of this. Whatever the reason more and more people are turning to remortgaging in order to adapt to society’s fast paced environment and ultimately save money.    

Remortgaging is the process of changing your current mortgage deal in order to switch to a more suitable deal or to save money. Remortgaging usually involves changing your mortgage provider but it is possible to remortgage and simply change mortgage products, keeping your existing lender the same. Often referred to as ‘switching’, remortgaging can save you money, consolidate debt and raise capital to buy that kitchen you’ve always dreamed of. 

Remortgaging came to prominence in the early 1990’s when house prices fell and mortgage lenders tried to prise away existing borrowers into remortgaging with highly competitive rates. Borrowers quickly realised they could save money by remortgaging and the market soon became extremely competitive. Today remortgaging is very popular and is likely to increase in popularity as interest rates rise and borrowers search for the best remortgage deals on the market. That’s where L&C comes in. 

Borrowers thinking of remortgaging often feel like they are in a twist or stick situation because of uncertainty attached to finding the right remortgage deal to suit their individual needs. However, remortgaging with L&C need not be a gamble. Searching the whole of the market, our specialist, expert advisers can recommend the best remortgage deal for your needs, free of charge - making complicated remortgaging a thing of the past plus saving you time and money.  

Why remortgaging could be for you

If you, like many borrowers today, believe in keeping the same mortgage provider because of long-term benefits then you are probably losing money. The fact is that mortgage lenders rely upon loyal customers to provide them with a stable, regular income. This stability allows lenders to offer lower, discounted rates in order to attract customers who are looking to remortgage away from their existing lender. This means loyal customers pay more each month on a higher standard variable rate (SVR), whilst enabling new customers to pay less.

To provide an idea of the savings remortgaging can achieve; if a standard 25-year interest only mortgage of £150,000 on an interest rate of 7.5% was switched to a deal 2%, the saving in monthly payments would be £3,000 a year. Therefore, the question is: can you afford not to remortgage? 

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See also:
remortgages made easy
how to find the best remortgage deal
the free easy guide to remortgaging