Remortgages

When interest rates fall it may be a good time to think about a remortgage on your home. How much money this may save depends on the reduction in repayments with the lower interest you may be getting from the new lender. There will usually be costs involved in moving your mortgage and the savings from the lower interest rate should more than cover the costs of the remortgage to make it worthwhile switching. Some lenders also offer a number of free services to new borrowers to reduce the cost to make the switch. Remember that you may have to make early-repayment charges to your existing lender and there may be other costs like valuation or legal fees associated with the new mortgage.

Remortgages are a relatively low risk business for lenders because of the charge on your home and your existing history of meeting the monthly repayments. You can also use remortgages to borrow more if the value of your property has increased, or if your circumstances have changed and you want a more flexible way of repaying your mortgage. The rules and types of mortgages which apply are generally similar for mortgages and remortgages, but you can now look at agreeing new terms like the amount (borrowing more or less), or the term (borrowing for a longer or shorter period).