Why Remortgage ?

Remortgaging can not only save you money, but can also be a cost-effective way of raising capital.

Remortgages offer the cheapest interest rates of all types of borrowing - at the moment, for example, you could remortgage at a fixed rate of 5.7% for five years. By borrowing more money than your existing mortgage, you can leave yourself with some extra cash for whatever purpose you desire.

But, although many people choose to do this, it can be a complex decision with a number of considerations - such as the effects of borrowing against what is normally a long-term mortgage and securing that loan against your property.

Transferring your mortgage to a new lender, or remortgaging with the same lender, can both save you a lot of money and allow you to:

• Benefit from a lower interest rate.
• Release equity stored in your property.
• Switch to a more flexible mortgage if you wish to alter the pattern of your repayments
• Switch from a variable interest rate to a fixed or capped interest rate if you think rates are going to rise.

There are many reasons why a remortgage could be benificial to your finances, although it is not a decision that should be treated lightly. We recommend you discuss your requirements, and available options, with a qualified remortgage expert to see if remortgaging is the best way forward.

Releasing Equity
Many borrowers who have had their property for a long time, and have seen an increase in their property's value, may have a considerable difference between their outstanding mortgage amount and the value of the property.

Positive equity is when the value of the property is larger than the existing mortgage. By remortaging homeowners can release this equity and potentially enjoy all the benefits of a remortgage.