Should you consider remortgaging your home?

Whether it’s debt consolidation or to free up some cash, there are various reasons why people consider remortgaging their home. Although mortgage affordability has improved over the past year, many people are still paying high levels of interest on their mortgage. In some cases, remortgaging could enable you to find a more suitable deal for your situation.

Over the past few years, high interest rates have led to high mortgage rates, however, recent cuts by leading banks have seen a fall in rates. The latest view is that mortgage rates should continue to fall during 2024, which is good news for many homeowners. Depending on the type of mortgage, for some people, it could be the right time to start thinking about remortgaging. However, there are various factors to consider.

Why remortgage your home?

If you are on a fixed term that is due to come to an end in the next six months, then it’s advisable to compare your mortgage with current deals. Some homeowners needing to remortgage could still be faced with rates far higher than they have previously been paying.

As well as finding better rates for your mortgage, remortgaging offers other opportunities too. It can allow you to access extra cash at times when you need it the most. Such funds could be used to consolidate debt, carry out important repairs or make home improvements. You might have experienced a major life change, and your existing mortgage no longer suits your needs. It’s worth checking your current mortgage and seeing if a remortgage is a better fit.

How remortgaging works

A remortgage enables you to obtain a new mortgage with a different rate from another lender. There are certain situations where a remortgage could be a viable solution. If your home has increased in price since you bought it, the loan-to-home value on your property may have changed. Therefore, you might have access to a wider range of mortgage deals.

A whole of market mortgage adviser is able to search hundreds of different mortgages to find one that is more suited to your situation. Once your remortgage application has been submitted, the mortgage lender will run a series of affordability checks, such as your credit rating. This enables them to assess whether you are able to make the monthly repayments.

Remortgage your property

Remortgaging can offer advantages in terms of better rates or access to cash. However, you would need to check whether your current mortgage provider will charge early repayment fees. Before you proceed with a remortgage, always get professional mortgage advice.

At Bubble Finance Hub, we provide holistic, whole of market mortgage advice to help you find the right remortgaging solution. Our experienced team have the ability to check hundreds of mortgages and our advice is always tailored to your exact circumstances.

If you’re thinking about remortgaging your home and need advice, get in touch to book an appointment.

Your home or property may be repossessed if you do not keep up the repayments on your mortgage.

You may have to pay and early repayment charge to your existing lender if you remortgage.

Thank you for reading our blog, Should you consider remortgaging your home?

Bubble Finance Hub