In the UK, whilst the numbers can fluctuate, roughly 39,000 remortgages occur on a monthly basis. In fact, in the first quarter of 2019, almost 40% of property loans were remortgages – with good reason. Getting on the property ladder is usually one of the main financial goals we set ourselves. It can take time to build up the deposit, and negotiate the rates. However, once you’ve got that first set of keys and the mortgage payments start going out, it might feel like the interesting part is over.
The remortgage process is where that changes. When interest rates fall, it makes more sense to move your money into investments, or somewhere we can potentially accrue some real gains, rather than a savings account. Remortgaging works in a similar way, a chance to renegotiate the terms of your mortgage payments. Here’s why it might suit you to remortgage your home sooner, rather than later.
Generationally speaking, interest rates have really lost their shine. For all the benefits you’ll see from dropping your cash into savings, you could almost justify keeping it under your bed. An alternative to putting money away could be simply changing the goalposts of your monthly mortgage payments. There’s a chance to save thousands of pounds, entirely through switching from your current rate to a new one. The options available can often be numerous and it’s vital to understand all the details, so it’s worth checking out a remortgage comparison platform for a clearer breakdown of your choices. With options from over 90 lenders at Trussle, for example, the potential outcome could be better value for you and your home.
In the vast majority of cases, remortgaging doesn’t add any additional fees and usually, you can acquire valuations and legal packages free of charge. However, explore your options – some remortgaging deals can even include cash-back bonuses.
Remortgaging doesn’t apply in cases where your mortgage is no longer affordable, either. If you’ve built up some equity in your home or property, you can push money saved on a mortgage into any other pursuit you choose. Potentially, even improving the house itself!
When life gives you lemons, cut your mortgage terms down. Often, our earning potential can change as we grow older. If your monthly budget improves, you can realistically shave several years off of a mortgage term by upping your contributions. The goal of every mortgage is to be paid off in full, and remortgaging can bring about that day all the quicker.
Remortgaging is the popular choice because it allows the home-owner to build equity on their own terms, in a manner that suits them. Our lives and the world can change quite a bit over the terms of a mortgage, and a monthly outgoing should fit a budget, not the other way around. The remortgaging process, like many financial instruments, can be shrouded in jargon and confusing language but it’s really quite simple. It’s about structuring a mortgage to suit you and your changing needs, and making sure your money is invested back into your life as you choose – and granting yourself new opportunities along the way.