Top Reasons Why Property Owners Remortgage
Remortgaging is not just for decreasing your monthly repayments, nor is it always a venture born out of necessity (when your mortgage term comes to an end, for instance). It can also be a great chance to change your repayment terms, offering more flexibility. In this guide, we’re looking at the myriad reasons property owners remortgage in the UK.
Top reasons property owners remortgage
Mortgage term has ended
When your mortgage term comes to an end, you can either choose to pay off your loan or look for a remortgage. You may also be able to extend your current mortgage, but if your application is not accepted then you will need to remortgage.
Your circumstances have changed
Many mortgages, such as residential and buy-to-let mortgages, come with strict terms. If you break these terms, you risk financial penalties. Buy-to-let for instance is not suitable for use as a primary residence – it must be let out to tenants as agreed in your contract. If your move into a buy-to-let is only temporary you may be granted permission to live in the property for a short time. However, it’s up to you to notify your mortgage lender of any changes in the usage of your property if it breaks any of the contract terms. Depending on the individual lender and the circumstances, you may be told to remortgage.
To get a cheaper rate
By far one of the top reasons property owners remortgage is to save money on their monthly expenses. Freeing up cash is a great way to either boost your savings as a nest egg for a rainy day, or to plug money into another venture. This could be on home improvements or even to save up for a deposit to purchase another property.
You want to borrow more
You may wish to borrow more money, in which case a remortgage could help you with that.
You want more flexibility
One reason to remortgage that can sometimes be overlooked, is acquiring greater flexibility when it comes to repayments. Being able to pay back more of your mortgage earlier, without facing any penalties, can be a great way to become mortgage-free sooner. For many homeowners, this is the ultimate goal – that rest-easy state of having to pay no mortgage or rent.
To consolidate debt
For people in debt, a remortgage can be an opportunity to make debts more manageable and easier to pay off.
Find a mortgage broker
If you’re in the market for a remortgage, speak to Agentis today. As ‘Whole of Market’ conveyancers, we can help you secure the best remortgage deal to suit your needs.
*You may have to pay an early repayment charge to your existing lender if you remortgage.
