Benefits of remortgaging

Introduction to remortgaging

People today prefer to remortgage their homes every few years as remortgaging allows them to take advantage of the new rates on offer. Remortgaging simply means switching your current mortgage to a new deal arranged either with your existing lender, or with a new lender. The few people who choose to remain on the same deal for the full term of their loan could lose out on a range of potential benefits, not least the opportunity to reduce the total amount paid back, which could be a significant amount in some cases. Remortgaging allows you to release some of the equity that you hold in your home and consolidate other debts. Car loans and credit cards attract higher rates of interest than that of your mortgage.

⁽¹⁾Here are a few benefits of remortgaging:

· If you took a loan when the interest rates were high or a deal you had has now come to an end, the chances are that you can save money by switching/ remortgaging.

· If you are paying your lender’s Standard Variable Rate (SVR), it’s highly likely that your existing lender will offer a better rate and greater flexibility on other available products. This could allow you to save money on your monthly repayments, or to repay your mortgage sooner. And if your current lender doesn’t offer better rates or greater flexibility on its other products, you may want to consider switching your mortgage to another lender, even if doing so would trigger early repayment charges payable to your existing lender, as this could mean a net saving to you.

· Many banks will offer new customers temptingly low deals in order to win their business, while leaving existing customers paying older higher rates. By switching to a new lender, you can take advantage of these deals to get yourself lower monthly repayments.

· The interest rates are low at the moment but experts predict that they will rise in the next 12 months. By remortgaging with a fixed rate deal, you could ‘lock in’ a low interest rate for your mortgage that will stay low for the next few years regardless of what happens to the base rate.

· Higher income or a rise in your property’s value means you could increase your mortgage to help pay for major outgoings such as weddings or your child’s university costs, rather than borrowing separately and in some cases more expensively, for the outgoing itself.

· With property prices having risen so quickly over the last decade, many home owners have a large amount of equity in their homes. Taking out a remortgage that is higher than your mortgage balance will release some of this equity for you to spend, usually at a lower rate than a secured loan.

· It can be cheaper and more convenient to adapt or add an extension to your existing home, paid for by remortgaging or a further advance, than to move home.

· Offset mortgages are a completely different kind of mortgage to the traditional type that most people have, and this can offer significant benefits to many. Offsetting might not have been available when your current mortgage was taken or you were not aware of its benefits. A remortgage will allow you to move over to this kind of package.

Convex and remortgaging

Convex is a conveyancing firm that offers easy remortgaging. The conveyancing solicitors at Convex handle the entire conveyancing process online; this allows the conveyancing process to proceed quickly without any hitches and hang-ups. Convex makes sure that the entire conveyancing process proceeds in a professional manner. If you have decided to remortgage you house you might want to consider using Convex conveyancing.

⁽¹⁾Source:

http://www.charcol.co.uk/knowledge-resources/guides/remortgaging/why-remortgage/

http://www.fast-remortgages.co.uk/why-remortgage.html

http://money.uk.msn.com/Mortgages/remortgaging/article.aspx?cp-documentid=4760909