Think carefully before securing other debts against your home. Your home may be repossessed if you do not keep up repayments on your mortgage.
When you remortgage, you are switching your mortgage to another deal, and frequently another lender.
Remortgages can be used for various reasons, however, most people simply switch mortgages because it will work out cheaper for them. For example, the introductory interest rate may have finished with your current lender, therefore you could potentially get a new interest rate with another lender.
It is worth noting that a remortgage is not the best option in all cases. Even if the lender you are considering switching to is offering a lower interest rate, you must still take into consideration the following facts:
- The new lender may charge you for valuation and solicitors fees, even if you have already paid these for your mortgage with your current lender.
- If you switch mortgage remember to look at the overall repayment period. You may be able to pay less monthly, but check the final repayment date of the mortgage as well.
Also, you may be able to switch your mortgage deal with your current lender, avoiding any unnecessary costs. Many lenders will allow you to switch your mortgage deal reasonably frequently.