Remortgage - The Basics
In principle, a remortgage involves exchanging your current mortgage for a lower cost mortgage option. This can be with your current lender or another mortage provider.
Reasons to Remortgage
The best reason to remortgage is to cut down on your SVR or Standard Variable Rate, which will reduce your monthly outgoings. It will be in your best interest to obtain a more competitively priced mortgage through your existing lender or a rival financial institution. With this in mind, you could either A) Have a smaller monthly repayment or B) Continue the same repayment but pay off your mortgage over a smaller period of time.
Another reason to remortgage, besides the financial benefits are the raising of necessary finance to enable building projects on your existing home, it is quoted that it is often chepear to build a square foot than buy a square foot, so this will have the obvious advantage of increasing the size of your exisiting house. Remortgaging will enable this to be undertaken and may very well add to the sale cost of your home in the future.
A Remortgage can also free up finances for other lifestyle choices, such as purchasing that chalet in the Alps, 50ft yacht or Lamborghini that you have always dreamed of, or for more necessary pursuits such as consolodating debts, putting a child through university or arranging a daughters wedding.
