Why Remortgage?
The number of borrowers switching deals has trebled
in last few years. This has happened principally because
of four factors or reasons:
- Ease of switching - The streamlining
of legacy processes and the increasing role that technology
has to play in the conduct of financial services business
means that it is now easier to switch mortgages than
at any point in the past.
- Save money - A gradually increasing
financial sophistication amongst the UK public has
meant that people are slowly waking up to the savings
remortgaging a property can achieve in terms of monthly
outgoings. The temptation of saving hundreds or even
thousands of pounds each year is enough for many people
to abandon their high-interest Standard Variable Rate
and switch to a more competitive deal.
- Raise capital - Soaring house
prices have left many homeowners sitting on a large
amount of equity. Releasing some of this equity can
be one of the cheapest methods of gaining large amounts
of secured loan finance. Assuming you stay within
the permissible Loan-To-Value range, then if you remortgage
your property for a sum that is greater than the amount
needed to repay the original mortgage, then the borrower
gets to keep the difference. For many people, this
can be the best way of paying for DIY projects, a
new car, school fees or some other major expense.
- Changing product type - A reasonable
number of people remortgage in order to change product
type. It may be that they wish to move to a current
account mortgage, or perhaps get rid of a poorly performing
endowment. Remortgaging gives you all the same choices
as if you were taking out a mortgage for the first
time.
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Remortgages
Guide
