From reducing your monthly expenses to paying for a major home renovation, remortgaging can offer you what you’re looking for.
It’s one of those things you might think about every couple of years: the fixed-rate is running out, interest rates have gone up, or it just occurs to you when you’re sorting out your finances. Time to remortgage.
But while remortgaging may seem one of the less exciting tasks in your day, it can actually be a way of helping you make an exciting life change. Whether it’s turning a so-so house into your dream home, giving you a bit more money each month to pursue a passion or hobby, helping you pay off your mortgage quicker or simply making day to day life a bit easier through reducing your monthly payments.
Here are three ways remortgaging can help you achieve something new.
If your home has gone up in value, or you’ve paid off a good chunk of your mortgage, you may be able to apply for some additional borrowing when remortgaging to help you with a major project. For many people that turns out to be a home improvement, such as a fabulous new kitchen or an extension – read our guide to the renovations that could make a difference to your property value.
If you’re looking to borrow money, it’s important that you make the right choice for your circumstances. Other borrowing options may be suitable for your needs.
If your fixed-rate mortgage period is about to come to an end, you may find your monthly payments go up if you then move onto your lenders standard variable rate so it’s a good time to look around and see if there is a better deal for you. If you think interest rates are going to go up, or if you prefer the security of knowing what you are paying each month on your mortgage, you might choose a new fixed-rate deal.
If you find a rate that saves you more than what you’re paying today it could free up enough money to pursue a new hobby, join a nicer gym, pay for a big purchase over time, such as a new bike or just make your everyday life a bit easier.
Alternatively, you may decide to just keep your payments the same and pay off your mortgage quicker, reducing the overall interest you are charged over the life of your mortgage. Check your remortgaging options using our calculator to help you work out which mortgage could get you closest to achieving your dreams.
Of course, everyone’s financial circumstances are different, and the state of the nation’s economy will also affect your personal finances. So you need to make sure that it’s worth going ahead and that your decision to remortgage won’t cause you issues in the future. Here are some of the things to watch out for.
But when it takes on average just 15 minutes for Lloyds Bank to give you an idea of whether you could borrow what you need, it’s easy for you to make the right decision – and get planning straight away.
THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.
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