Why There’s Never Been A Better Time To Remortgage Your Home

Thanks to historically low interest rates and competitive lenders battling it out to attract borrowers, there’s never been a better time to remortgage your home. And with over £35 billion worth of mortgages due to mature in September and October, lenders are doing everything within their power to grab the attention of prospective customers. If your mortgage’s fixed rate period is coming to an end or you’ve already let it slip onto the standard variable rate (SVR) you could find yourself forking out more money than you have to. Although lenders offer rock bottom interest rates to borrowers at the start, once the fixed term is up, many mortgage providers automatically switch customers over to a less beneficial rate. If you’re unprepared, this could see your monthly repayments surge. According to the Citizens Advice Bureau, borrowers who default onto the SVR pay £400 a year more on average, once their 2-year fixed rate deal ends. For first time buyers with many years of repayments ahead, this figure could be even worse, with some paying more than £3,000 extra each year.

Making overpayments

Lower interest rates aren’t the only reason to remortgage. You may also be able to find a deal that allows you to make overpayments when possible. By overpaying on your mortgage during times of financial prosperity, you can reduce the amount of interest your pay over the course of your mortgage and save yourself thousands of pounds on the overall cost of your home. Overpayments could also enable you to pay off your mortgage earlier and become debt-free sooner than originally anticipated.

Freeing up money for large life purchases

Whether you want to free up money for home improvements, university tuition fees or travel costs, remortgaging your property could help you access capital from your home to be spent elsewhere.

Changing your repayments to reflect your income

If your income has changed since you first took out a mortgage, you could remortgage your property to alter your monthly repayments. If your income has increased, you could pay more each month to pay off your mortgage sooner If your income has decreased, you could remortgage to make your expenses more manageable.

Protect yourself from interest rate rises

Although interest rates are at their lowest now, this is unlikely to last. Eventually, rates will rise again and when they do, finding affordable deals could become that little bit more challenging. By remortgaging your property and committing to a new fixed rate deal, you can protect yourself from interest rate rises and ensure your repayments are affordable. However, there’s also a chance that interest rates could fall even further before they go up. If this happens, you may miss out on even better deals. For many homeowners, this is a risk worth taking in order to secure a manageable deal. If you’d like help finding the right mortgage deal for you, please get in touch with the team at TaylorMade. We can compare hundreds of deals, point you in the direction of the providers most likely to offer you a loan, and guide you through the entire mortgage process.