It’s Time To Consider A Remortgage
With home loans comparatively cheap and all the signs pointing to interest rate rises, nobody wants to miss the boat when it comes to securing the lowest mortgage interest rates.
Currently, the most attractive five year fixed rate mortgage deals have interest rates around half those of the average standard variable rate. On a mortgage of £150,000 this difference would represent a saving of £125 a month.
If your fixed term mortgage deal is coming to an end or you have a standard variable rate home loan, Cotswold Mortgage Advice Centre can help you to find the most suitable remortgage.
What is a remortgage?
Remortgaging involves switching your current mortgage deal, either to stay with your existing lender or to move to a new one. The most common time that people remortgage is when their fixed, introductory tracker or discounted rate mortgage ends.
A MORTGAGE IS A LOAN SECURED AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE OR ANY OTHER DEBT SECURED ON IT.
YOU MAY HAVE TO PAY AN EARLY REPAYMENT CHARGE TO YOUR EXISTING LENDER IF YOU REMORTGAGE.
Reasons to consider remortgaging
One of the biggest reasons people remortgage is to save money by moving on to a lower rate. When you first take out a mortgage you will normally be given a discounted rate or a low tracker rate. Once that deal ends you will usually be moved on to the lender’s standard variable rate, which tends to be higher – so lots of homeowners think about remortgaging at this point. By remortgaging you can switch to a lower fixed rate and reduce your payments accordingly.
Another reason to remortgage is to reduce the payment term. By finding a cheaper deal and keeping repayments the same, you could pay off your mortgage more quickly. You can also remortgage if you want to release equity in your home for home improvements or other special purchases.
If you have lots of credit card debt, releasing money from your home can be cheaper than taking out a loan because mortgages usually have a lower interest rate. However, it is important to remember that by spreading out your debts you could be extending the payment term and may end up paying more in the long run.
Why should I act now?
Over the short to medium term, interest rates are likely to go one way – upwards. By switching to a new fixed rate mortgage now, you have the opportunity to save hundreds, or even thousands of pounds. By fixing your monthly mortgage payments, you’ll also have the peace of mind knowing that your mortgage outlay won’t increase.
How much could you save?
If you’d like to find out how much you could save by switching your mortgage, please get in touch and we'll get back to you as soon as we can.
Sill tied into a fixed term offer with your current mortgage?
We can help. Simply tell us when your current mortgage offer is due to end and we will contact you six months in advance to start the ball rolling.