What is a re-mortgage?
Remortgaging is getting a new mortgage deal on your home from a new lender.
Usually, you’ll do this at the end of your current mortgage deal. But there are times where you might remortgage sooner.
Reasons you may wish to re-mortgage
– Your current rate is due to come to an end.
– Change to a new provider to take advantage of a better deal or a different type of mortgage.
– To release some equity from your home, this could be for a number of reasons. Such as, home improvements, debt consolidation or to pay for a life event such as a wedding or to help your children out with buying their first home.
Think carefully before securing other debts against your home. Consolidating debt may reduce your outgoings now, but you may end up paying more overall. Your home may be repossessed if you do not keep up repayments on your mortgage.
What happens if you do not arrange a new deal?
If you come to the end for your current deal and do not make arrangements to transfer to a new deal or mortgage, it is likely you will revert to your current lenders standard variable rate (SVR). This rate can vary up and down. Whilst this rate could be a higher rate than others available, it often comes with no tie in period, so may allow you to make larger over payments at any time.
How can we help?
Discovery Financial will always work hard to shop the market, to help find the most suitable mortgage for you. Where we can, we will aim to compare this against what your existing lender can offer. To ensure you are getting the best deal for you.