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Reasons to Remortgage

19th April 2017

You may be looking to borrow for home improvements, reduce your monthly mortgage repayments, pay off some debts or reduce your mortgage term. If any of these are applicable then you should consider remortgaging.

Remortgaging is when you take out a new mortgage with a new lender on a property that you already own.

 

To pay for home improvements

Perhaps you want to expand your property with an attic/loft conversion or basement extension to add space, along with value to your home? A loft conversion can cost between £30,000 and £60,000 and can increase the value of your property by as much as 15%.

If you need to raise funds for such home improvements or similar, then remortgaging your property may the right option for you.

Data from conveyancer LMS shows £837 million of equity was withdrawn through remortgages during December – an average of £30,361 per borrowing household, which could be enough for you to undertake the renovation’s you have dreamed of.

Improving your current home rather than moving to a bigger property can make a lot of financial sense, even if you’re making minimal improvements that don’t increase the size of your property.

 

To reduce the amount of monthly mortgage payments

Reducing the monthly cost of your mortgage payments is one the most popular reasons to remortgage your home.

You can consider changing your lender at the end of the fixed or tracker rate period, typically once any penalties have ended.

Before changing your mortgage lender it’s important to check what early repayment charges your current lender may have.

To pay off some existing debts

Some lenders will allow you to borrow to clear debts you may have accrued such as credit cards personal loans or overdrafts. You may be able to achieve a lower interest rate on these debts and reduce your overall monthly outgoings by consolidating debts.

 

To reduce the mortgage term

You can consider reducing the mortgage term when remortgaging which may save thousands of pounds in the long run. This is often possible when the rate you are getting for the new mortgage is lower than the rate you are currently paying.

Remortgaging can take between six and ten weeks depending on your requirements and your circumstances.

 

Seek independent advice

Getting advice from an independent financial advisor ensures you are getting sound, unbiased advice that is beneficial to both your finances and your requirements.

All it takes is one phone call and then you can rest assured that we will organise the rest for you. Get in touch today on 020 3553 9340 or email us at info@imcfs.co.uk.

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