Moneygate

Remortgage for best mortgage deals, say Moneygate

In today’s market many householders prefer to switch their mortgage every few years, using the best mortgage advice, to make sure they are getting the best rates on offer. Meanwhile others remain on their existing deal for years, potentially losing out on a range of benefits that new customers enjoy.

At the very least that includes paying less cash into the home loan over the years, simply by saving on interest rate changes. Remortgaging involves switching your current mortgage to a new deal, arranged either with your existing lender or with a new lender. Increasingly people are using an independent financial adviser to get the best mortgage advice and secure the best deal.

Probably the number one reason to switch is to save money.  Many people pay the lender’s Standard Variable Rate (SVR), and it is very likely that their existing lender has products offering better rates and greater flexibility.

Annabel Green of national IFA Moneygate, said: “This could include saving money on monthly repayments, or the facility to repay a mortgage sooner. If a current lender does not offer better rates or greater flexibility on its other products, you may want to consider switching your mortgage to another lender.

“This may trigger early repayment charges payable to your existing lender, but the net gain could still make a move worth it.”

Many people remortgage to raise money.  Despite the property crash many homeowners still have a large amount of equity in their property and may want to re-mortgage to raise cash to pay for an extension, renovation work or major outgoings like a wedding or university costs.

Remortgaging can often be the answer to 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 of money, than to move home.

Releasing some of the equity in your property can offer the flexibility to consolidate debts, such as a car loan or credit cards, which usually attract higher rates of interest than that of your mortgage.

In the past, remortgages were popular as homeowners sought to withdraw equity from their properties to fund the likes of home improvements or holidays. In the current economic climate with slowing house prices and higher interest rates, this is not such a common occurrence and a remortgage should really be driven by need rather than luxury.

For more information go to www.moneygate.co.uk