Remortgaging will increase your debts
Remortgaging doesn’t involve adding another mortgage to your property, instead, it switches your current mortgage to a different provider and therefore new deal. When you remortgage you can do it on a like-for-like basis, or to borrow more money for things such as home improvements, and redecorating.My bank will offer me the best deal
This is a common misconception around remortgaging. The chances of your bank offering you the best deal compared to other lenders is not guaranteed. If you’re unsure where to find the best mortgage deal, try speaking to a mortgage broker as they can help you find deals from a wide range of lenders, so they are more likely to match one to your circumstances.Fixing for longer is better in the long-run
Long-term fixes (5 years and upwards) are an excellent option for some people looking to switch, however, they are not right for everyone. Long-term deals offer peace of mind, but they are often accompanied by higher interest rates and high early repayment charges. If you are looking to switch deals, be sure to shop around, to find the best deal for you.You won’t save much money
Remortgaging can actually save you large amounts of money if you find a better deal. Finding a better deal will result in lower monthly repayments, leaving the extra money for you to spend on other important things.Terms will stay the same
If you decide to remortgage, there is a possibility your terms can change. When you first took out your mortgage you may have been offered an expensive product due to your financial situation. If your financial circumstances and credit score have improved, remortgaging your home could result in new, lower interest rates, and therefore lower monthly repayments.Paying the SVR means I’ll clear my mortgage quicker
When you move on to a lender's Standard Variable Rate, you’ll be paying a lot more every month, but the extra cost won’t go towards reducing the balance of your mortgage - instead, you will just be paying higher amounts of interest. However, if you have moved onto your lender's SVR, you are not tied into it for a set amount of time, meaning you can set about finding a better deal to switch to straight away.If you’re coming to the end of your fixed-rate deal, it’s never too early to shop around, and you can usually agree to a new deal up to 6 months proper to the end of your current deal. For help and advice with remortgaging your home, speak to a member of our expert team - we can help guide you through the whole process and help you select the best deal for you.
