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Why You Should Switch Your Mortgage

Owning a mortgage is most likely the biggest financial responsibility you will ever have, but you can actually save money if you do it in the right way, and that can sometimes be done by remortgaging. There are ups and downs to this though, and it does really depend on what your current situation is.

Here are all the reasons why you should consider it.

Your current deal is about to end.

If you have a discount mortgage, then it will only last a short time, usually around two to five years. If this is the case, you will need a new one, because your lender will just put you onto the standard variable rate, which will be higher than what you were previously paying, and will also be higher than the other options you have – although they will probably fail to mention that part… This is why you will want to be readily prepared with a cheaper rate around 14 weeks before your current rate ends.

You want a better rate.

If you’re not happy with what you’re paying now, then you may want to look at a cheaper option. Having said that, trying to switch mortgages while you’re already in the middle of one can end up costing you quite a bit of money, but, the savings in which you could make later down the line may be worth it, so look at your options for the types of lending you’re getting first, and then see what you can do with what you currently have.

Your home’s value has dramatically increased

If the value of your home has gone up a lot since you took out your mortgage, you may come to realise that you’re in a lower loan-to-value band, which means that you are eligible for much lower rates than what you’re paying now.

You want to pay more.

Sometimes you might get lucky and win the lottery, or you get a raise at work and have a lot more extra cash about. If so, you may want to pay more off your mortgage to speed the process up a little, but the deal you currently have might not allow you to do that.

By getting a remortgage, you will be able to change how much you want to pay monthly, and that may even result in a cheaper rate.

You want to borrow more.

In some circumstances, you may be struggling to keep up with all the payments, and if this is happening you will either want to reduce what you are paying on your mortgage per month, or get an increase on how much you are being lent. But in many cases, a lender isn’t willing to give you an increase because they see that you are struggling already – meaning your only other option is to change the mortgage.

As you can see there are plenty of different reasons as to why you may want to remortgage; now it all depends on whether you think it is the best option for you.

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