The advantages and disadvantages of remortgaging

28th March 2020

The advantages and disadvantages of remortgaging

Remortgaging your home can make good financial sense if you’re a homeowner and want to take advantage of a better dea. However, 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, saving you money on your monthly repayment.
  • You can use some of the equity in your home to release funds – great for doing that renovation you’ve always dreamed of, or using the cash for something else.
  • 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 – if your circumstances change, you should update your mortgage deal to reflect them.

 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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June 2020

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