Benefits Of Remortgaging

Remortgaging can not only be used to lower your interest rates once your existing deal has expired, but also has a number of other potential benefits as well:

Debt Consolidation:
A mortgage, because it is secured against your home, will have a noticeably lower interest rate than unsecured credit, such as a credit card or unsecured loan.

Borrowers who have multiple unsecured debts can reduce the amount of interest they pay, and their monthly outgoings, by consolidating all their outstanding debts with a remortgage.

To do so the homeowner increases the size of their mortgage by borrowing against the value of their property, and uses the extra cash to pay off their unsecured debts. Consolidating debts also allows the borrower to reduce their monthly outgoings into one easily managed repayment.

However, debt consolidation should be considered carefully – you need to be aware of the risks when securing previously unsecured debts against your home. The More Group’s remortgage experts can help you understand whether debt consolidation is the right solution for you. To speak to one of our experts, at no cost and with no obligation, complete our online form here.

Raise Capital
When the market value of your property is larger than your mortgage amount your property has what is known as “positive equity”. By borrowing further against your home you can release this equity, providing you with a lump sum of cash for whatever purpose you wish.

Switching Interest Rates/Deal Type
The mortgage deal you found two/three years ago may have suited your circumstances and income at the time, but requirements and jobs change, and remortgaging can help you switch deal to find a more flexible mortgage to suit your lifestyle.

Remortgaging can also allow you to switch from a variable rate mortgage to a fixed interest rate if you believe rates are going to rise.