There are many reasons why someone would choose to remortgage their property. Many people choose to do so in order to save money or to gain flexibility with their payments.
Mortgage deals and prices may change over time and you might find that the deal you took when first purchasing your property is no longer the best available.
You are able to remortgage at any time during your contract, however, if you do so before the end of your fixed term, you may have to pay an early repayment fee.
It is important to check which fees apply to you before doing this as sometimes the charges can mean that entering a new mortgage deal will be more expensive or just as expensive as your existing one, meaning it won't be a worthwhile change.
The most common time to remortgage a property is at the end of your fixed discounted rate term as this is usually when your mortgage will become more expensive.
Remortgaging doesn’t necessarily mean you will have to switch lenders. Many lenders allow you to remortgage with them, meaning you don’t have to change providers.
It is also important to remember that when remortgaging, you will likely have to pay additional fees such as having the house or property revalued, having to pay legal fees as well as any administration charges.
Some lenders may offer fee-free deals in order to tempt you to remortgage with them, but it is important to check the fine print of these deals as there may still be hidden costs associated.
If you are remortgaging in order to gain more flexibility with your mortgage, such as being able to pay higher amounts without having to pay any early repayment fees, it may be worth discussing this with your lender to see if there is any way to adjust your current contract without having to change.
Looking for mortgage advice in Liverpool? Contact Cassidy Mortgages today!