Here at Talk Mortgage Spalding, we understand the need to get the best deal on your mortgage possible. With very uncertain times ahead of us, there is no better time to start considering remortgaging. With years of specialist experience, you can be safe knowing we will do our best for you.
“The average new two-year fixed rate – which was 4.74% has sky rocketed to 6.16% in October 2022, according to the data firm Moneyfacts. It was a similar story with five-year fixes, with the average rate shooting to 6.07%.” (source)
Benefits to remortgaging
Let’s take a look at a few benefits of remortgaging;
1. Reduces your mortgage costs
Once your introductory rate is over, you’ll pay a higher interest rate on your mortgage. This could add thousands of pounds in interest over the loan term.
2. Free up your capital
Lower payments mean you’ll have more disposable capital from your monthly income.
Releasing cash in the form of a more significant loan amount also means you can access additional equity from your home to pay for substantial expenses such as home improvements.
3. Adapt to life events
Your current mortgage deal may not offer the flexibility you now need. For example, if your income has decreased or increased since your original deal, you may want to change your monthly repayments or loan term.
4. Pay off your mortgage sooner
If you’ve received a windfall, such as an inheritance, you could be in a position to make an overpayment or even completely pay off your mortgage.
Remortgaging could save you thousands of pounds in early repayment charges and exit fees.