There are many reasons for people to consider home remortgage loans. The most common reason is to save money. Interest rates may have been high at the time you got your original mortgage or you may have gotten a short term special rate offered by your lender to attract you to them. If either of these things occurred, it is probably a good idea to start looking for a remortgage loan with a lower interest rate. By finding a remortgage loan with a lower interest rate than your current mortgage loan, you can save money each month on your repayments. In the short run, these savings may not seem like much, but over time, by finding a remortgage loan with a lower interest rate than your original mortgage, you may save yourself a lot of money.
A second reason that people consider remortgage loans is to consolidate their outstanding debt. If you borrow more money with your remortgage loan than is needed to pay off your outstanding mortgage debt, you can use the money left over to pay off any number of small, high interest debts such as credit card debt. By doing this, you no longer have multiple debts accruing large amounts of interest with each passing month. The danger of a debt consolidation remortgage is that you are taking out more debt to pay off existing debt, so make sure that the rate you have been offered on your remortgage is competitive enough to make this a genuinely worthwhile exercise.
Another reason to consider a remortgage loan is to get a little extra money to help with home improvement projects or extensions on your home. Again, by borrowing more with your remortgage than is needed to pay off your original mortgage debt, you can use the extra money to finance your home improvement or repair projects. A final reason you may want to consider remortgaging is to free up some extra money to pay for large expenses such as your child?s education or a wedding. Instead of taking out individual loans to pay for these expenses, using money from a remortgage will allow you to avoid obtaining another loan with another high interest rate.
Once you've decided to take out a remortgage, take a moment to fill out our short remortgage questionnaire, and we will connect you with a mortgage adviser from the SimplyFinance network who will be able to find you the best remortgage deal for your circumstances.