Pure Financial Solutions

Why should I remortgage?

In today’s competitive market, many borrowers choose to remortgage (switch their current mortgage for a new deal, either with their existing lender or a new lender) every few years in order to take advantage of the new rates and products on offer or to fit changing life circumstances.

Remortgaging can help you:

Save Money:

Remaining on the same deal for the full term of your loan could see you losing out on the opportunity to reduce the total amount paid back, in some cases leading to significant savings.

Avoid moving home:

It can be cheaper and more convenient to adapt or add an extension to your existing home, paid for by remortgaging or a further advance, than to move home.

Suit changing circumstances:

If your financial situation has changed and you now need a mortgage that can accommodate, for example, higher overpayments or a lower monthly rate, remortgaging can get you a deal that better fits your lifestyle.

Raise money:

Higher income or a rise in your property’s value means you could increase your mortgage to help pay for major outgoings such as a wedding or your child’s university costs, rather than borrowing separately, and in some cases more expensively, from other sources.

Consolidate your debts:

Remortgaging can allow you to release some of the equity you hold in your home and consolidate other debts, such as a car loan or credit cards, which can attract higher rates of interest than that of your mortgage. While this could reduce monthly payments, it may mean you pay more over the long term, so should be carefully considered and professional financial advice sought.