Re-mortgage UK
Why re-mortgage your house?

Of course there are a million different reasons why people choose to re-mortgage their house, but they all boil down to the same thing: saving money. Over the past few years the Chancellor of the Exchequer has kept interest rates low and you'll probably find that you belong to the majority of UK homeowners who are paying too much for their mortgage. Even prudent borrowers, with fixed rate mortgages, may find that their monthly payments no longer reflect the Bank of England's low base rate.

The other side of the coin is that low interests rates make it an attractive time to switch from a Standard Variable Rate mortgage to a Fixed Rate mortgage. While you're unlikely to make any great short-term savings, you'll have the peace of mind of knowing that your monthly outgoings aren't being controlled by the performance of the economy.

Besides allowing you to take advantage of more competitive interest rates, remortgaging also enables borrowers to release some of their house's capital. Capital can be raised against any portion of the mortgage that has been paid off, or against any increase in your property's value. Current financial forecasts indicate that UK property prices will continue to skyrocket, so we're talking about serious money. Because interest is charged at the same rate as your mortgage, this type of borrowing is generally much cheaper than taking out a personal loan and can be an astute way to consolidate any debts under one financial umbrella. The cash lump-sum could even be used as a second deposit to help you on to the next rung of the property ladder.

However, before you rush out to re-mortgage your house it's important to understand that there are costs involved. We've outlined some under the heading 're-mortgage costs', but for the complete picture it's worth consulting a financial advisor or independent mortgage broker.

 

 

 

 

 

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