It’s a bit of a ‘back-to-back’ remortgage focus given how our last article on remortgaging was also the last piece we published. However, this piece is more explicit in providing five solid reasons to remortgage. So, if you’ve been asking yourself ‘why should I remortgage?’, then this one’s for you.
1. You want more from your mortgage
And that’s okay. We all want more. And now you can have it, because if you arranged your mortgage some time ago, there’s a pretty good chance that the mortgage rates you can get today are MUCH better. We’re currently seeing some of the best mortgage rates we’ve seen in decades, so don’t miss out on an easy opportunity to reduce your monthly mortgage payments.
2. There’s money in bricks and mortar
If anyone can relate to that phrase, it’s us Brits. After all, living on a tiny island with limited space to develop tends to work in the favour of homeowners as property prices continue to steadily (and sometimes not so steadily) rise. And, if you’re one of the lucky ones to have increased their property equity – and therefore property wealth – then you may now be in a lower loan-to-value (LTV) band. The lower the LTV ratio, then the lower the rates you can access.
3. What comes down must go back up
We’ve covered this point extensively recently, so we’ll keep it brief. UK interest rates are very low, and they won’t be this low forever. Nobody knows when they will rise – but they will rise. If you’re ready to remortgage and lock in a great mortgage deal, then now really is the time to do it.
4. The fixed mortgage payoff
There are many benefits of taking out a fixed rate mortgage, but flexibility generally isn’t one of them. Yes, you may have a good fixed rate mortgage deal, but if you’ve just been paid a bonus, or received a windfall, and you’re looking to pay off some of your mortgage, then it might be out of bounds without incurring penalties. Maybe a new mortgage will offer the flexibility that you can now afford and give you the freedom to pay off chunks on your own terms.
5. The end of the line
Once your mortgage deal comes to an end you will fall onto the standard variable rate, which is likely to be a lot higher. It probably won’t take you too long to realise, as you’ll notice the jump in monthly payments. However, the difference will be a direct cost to you – and one that could have been avoided. Why deal with remortaging on a reactive basis when you can do it proactively? Get on top of your mortgage before increased monthly payments get on top of you.
Does any of this sound familiar? If it does, then it’s really simple to address. As a Guildford mortgage broker we have access to some of the cheapest mortgage deals available right now. All you need to do is contact us on 01483 238280 or email one of our Guildford mortgage advisers on info@complete-mortgages.co.uk.
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