The pros and cons 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 pros and cons of remortgaging:

The pros:

  • 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 cons:

 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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April 2020

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