The advantages and disadvantages of remortgaging

28th March 2020

Remortgaging your home can make good financial sense if you’re a homeowner and want to take advantage of a better deal, but there are a number of advantages and disadvantages that you should be aware of before you start a remortgage application.

Here are the key advantages and disadvantages of remortgaging:

The advantages:

  • You can borrow at a lower interest rate than your current mortgage deal.
  • You can use some of the equity in your home to release funds.
  • You can consolidate your debts into one affordable payment and reduce your monthly outgoings.
  • You can move to a new mortgage product that suits your changing financial circumstances.

 The disadvantages:

 You may need to pay a fee when you remortgage – and that could make your new lower mortgage rate less rewarding.

  • You’ll be using your home as security for your remortgage, which means it could be repossessed if you don’t keep up with your mortgage repayments.
  • If you’re taking your remortgage over a longer term than your existing mortgage, the total cost you repay will increase.

If you’re interested in remortgaging your home and would like to know if you’re eligible, please talk to our team of expert mortgage advisers and we’ll talk you through your options. Call us on 08454 500200 or click here to make an enquiry.

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We were very impressed with the service we received at Charters. Chawley and Cara were incredible and supported us every step of the way from initial enquiry to owning our new home. As first time buyers it felt quite daunting and Chawley was able to offer simple explanations and guidance which put us at ease. We were so impressed we were able to get a mortgage offer during a global pandemic and I put that down to the hard work of the team at Charters. 100% would recommend if you want friendly and knowledgeable staff who seem to really care and are on your side during what is usually a very stressful time.

Sam C

November 2020

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