Re-mortgages

This happens when you change the mortgage you currently have on your property, either by switching it to a new lender, or by moving to a different deal with your existing lender.

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Reasons to re-mortgage

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• Your current deal is about to expire – when this happens the lender will start charging you their standard variable rate, which is usually higher than your previous rate. By re-mortgaging you can opt for a better interest rate. 

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• You’re on a high interest rate – if your rate is variable, a rise in the Bank of England base rate can increase your mortgage payments. You may be able to find a more competitive rate by re-mortgaging.

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• Releasing equity – you can also release equity from your property (also known as a further advance) to pay for home improvements or re-paying other debts.

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• You want more flexibility – you maybe unhappy with the limits of your current mortgage deal, maybe you wish to over pay by more than your current lender will allow, there are mortgages that will cater for this and alternative mortgages that you suit better.

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• Increased property value – if your property value has increased, your lower loan-to-value might help you qualify for better interest rates.