Why should you remortgage?

Getting a remortgage can be a time consuming business, with much to consider. Why go to all that trouble?

Get a cheaper deal

Many banks will offer new customers temptingly low deals in order to win their business, while leaving existing customers paying older higher rates. By switching to a new lender, you can take advantage of these deals to get yourself lower monthly repayments.

Get a fixed rate

By historical standards, interest rates are pretty low at the moment. However, many experts are predicting that they will start to rise again over the next 12 months. By remortgaging with a fixed rate deal, you could 'lock in' a low interest rate for your mortgage that will stay low for the next few years regardless of what happens to the base rate.

Offsetting

Offset mortgages are a completely different kind of mortgage to the traditional type that most of us have, and can offer significant benefits to many. Offsetting might not have been available when you took out your current mortgage, or maybe you weren't aware of the benefits - a remortgage would let you move over to this kind of package.

Use your equity

With property prices having risen so quickly over the last decade, many homeowners have a large amount of equity in their homes. Taking out a remortgage that is higher than your mortgage balance will release some of this equity for you to spend, usually at a lower rate than a secured loan.