Completing a remortgage is done for a variety of reasons mainly to save money is the most common reason and can be alikened to witching Gas/Electric providers etc to save money
a mortgage is a debt and the way of saving money is by achieved the lowest APR rate in terms of repaying it. If two customers borrowed exactly the same amount of money over the same number of years and one is paying a rate of 2% and one of 4% the 2% payments will be less they will boyth be repaying the capital but less interest charged on the lower rate.
There are a lot of customers/clients that one there intial rate has ended then move on to a standard variable rate and generally speaking this is higher than a new rate or new deal offered by many lenders doing remortgages. Most lenders will also cover the main costs in remortgaging such as Valuation costs or legal fees.
Remortgage for Debt Consolidation
This is whereby should you have sufficient equity in your property you may be able to consolidate your debts this could be to lower you overall outgoings and reduce your monthly payments care should be taken when consolidating debts and again an advisor will give advice on the risks and implications of debt consolidating there are even some lenders that will consolidate debts up to 90 and 95% loan to value. Some people will have completed home improvements for the property with the intention of adding this to the mortgage at a later date - It will be worth speaking to an advisor before doing this as the rules with lenders criteria varies, some lenders wont mind it is done this way round however some have strict rules on the amount of money or debt that can be added and is often restricted to a certain loan to value meaning you may not be able to add all of your debt to the mortgage even though this was used for a home improvement where as if you applied for this at the outset as a home improvement amount the lending is generally more generous.
The ideal time to review your mortgage is around 3-6 months before your initial rate ends and a new deal can be applied for however its important the new deal does not complete until your current rate has ended to avoid costly , penalties sin some scenarios it can be beneficial to move before the rate ends but its important to seek advice and our qualified advisors will advise on this scenario.
Other reasons people want to remortgage