When to remortgage
When you already own a property, it’s easy to simply continue with your current lender, but sometimes it is worth exploring alternatives.
You probably check your mobile phone or utility tariffs when your contract is due for renewal and it’s a good idea to check the best remortgage rates as well. It could save you thousands of pounds a year or allow you to borrow more for a similar monthly payment.
If you have a fixed rate or tracker mortgage it’s worth checking the market before your lender moves you to a standard variable rate (SVR) mortgage. Existing home owners can check the market and choose another mortgage product up to six months in advance. It can still be worthwhile to change your lender, even if you face an early repayment fee.
If the value of your property has increased since you took out your mortgage because you have made improvements, for example, you could move to a lower loan-to-value level to reduce your interest rates.
For some people remortgaging their house allows consolidation of other loans, but this should only be done following very careful consideration.