9 Reasons to Remortgage
Written and Verified by Charlotte Adams
Thinking whether to remortgage or not? Find out our nine reasons why you should consider remortgaging your home. You can save a lot of money on remortgaging, so make sure you get the best deal.
Excellent
4.85 Average rating
Make a Mortgage Enquiry
9 Reasons to Remortgage
The mortgage on your home is likely to be the biggest financial commitment you have, so making sure you are on the best possible deal by remortgaging can save you a lot of money. A remortgage is when you take out a new mortgage on a property where you already have an existing loan or own it outright.
There are two ways to remortgage – you can either switch to a new mortgage lender or move onto a different mortgage deal with your existing provider. Whichever route you take, there are many valid reasons to remortgage. Check out our top nine reasons to remortgage your home today.
Why Use a Remortgage Broker like John Charcol?
We Take Care of Everything
With over 45 years of service, we've seen it all. We can save you money, time and make remortgaging your property easy.
We're Highly Recommended
We have over 1,800 5* reviews on reviews.co.uk, so you can feel confident that your mortgage is in the right hands.
We Give Personal, Expert Advice
We work around your schedule to help you arrange a mortgage that suits your circumstances, no matter how complex.
Reasons to Remortgage Your Home
1. You Want a Better Rate on Your Mortgage
The mortgage market is very competitive in terms of available interest rates, so by switching mortgage lenders or moving to a better deal, you could significantly reduce your monthly mortgage payments. Switching to a different lender may involve paying an exit fee or an early repayment charge to your current provider. However, any extra charges may be worth it compared to the amount of money you could save by remortgaging to a better rate.
2. Your Current Mortgage Is Coming to an End
If your existing mortgage is nearing an end, you will need to find another mortgage. The best mortgage deals usually only last for two to five years and come with various incentives such as a tracker, fixed-rate, or discount mortgage. When your time is up, most lenders will automatically put you on its Standard Variable Rate (SVR), a rate that usually has a higher amount of interest and costs more than the other options available. This is a great reason to remortgage at a cheaper rate.
3. You Want More Flexibility
It's common for people's circumstances to change. For example, you may get a better job earning more money and wish to make overpayments on your mortgage, or you may want to switch to an interest-only or offset mortgage to free up capital. This is a great reason to remortgage. It allows you increased flexibility to switch to a mortgage deal that better suits your current financial situation.
4. Your Home Value Has Increased
If the value of your property has increased over time, it may be worth remortgaging. If this is the case, you may find your home has a more favourable loan-to-value rate, which opens up many more options. Remortgaging to a new deal can ensure you get much lower rates and free up cash to put towards paying off your mortgage, other debts, or perhaps put towards home improvements.
5. You Want to Consolidate Your Debts
Consolidating debt has become a common reason to remortgage. If you have credit card debt or short-term loans across several different lenders, you can raise money by remortgaging to pay off these debts and be left with just one monthly payment. Remortgaging for debt consolidation will reduce how much interest you pay on your total debt, saving you thousands in the longer term. This can also help you to recuperate any damage to your credit score.
6. You’re Divorcing
If you’re divorcing or splitting from your partner, remortgaging could raise the money you need to buy out your ex-partner, depending on your ability to afford the mortgage on just your income. Remortgaging for divorce can also help you get a deal with a better rate and lower, more affordable monthly payments.
7. You Want to Borrow More Money
Remortgaging enables you to borrow more money against your home. If your home's value has increased since you took out your original mortgage, your equity will have increased too, which means you can increase your mortgage amount against this. You can use this extra money for home improvements, funding a new business venture, or putting it towards your children's university education.
8. You Want to Pay Off Your Mortgage Quicker
One of the top reasons to remortgage your home is to pay off your mortgage sooner, so you'll be mortgage-free. Not many mortgage providers will allow you to overpay on your mortgage, and those that do may charge you to do so. If paying off your mortgage quicker is your goal, then remortgaging to a new deal with low or no overpayment charges is a good solution.
9. You Want to Avoid the Rise in Interest Rates
Rising interest rates can increase the overall cost of your mortgage, especially if you are on a tracker mortgage. If you’re worried about rates rising in the future, remortgaging could help you find a lower fixed-rate mortgage.
There are many valid reasons to remortgage. If you’re considering remortgaging your home but need help finding the right option for you, contact John Charcol. Our team of experienced mortgage advisers can recommend a range of remortgage options to suit you. Request a call back or call us on 0330 433 2927 to get in touch.
WANT A BETTER
MORTGAGE?
Talk to Our Experts Today
Remortgage Calculator
The costs of a remortgage will depend on the amount you need to borrow, the type of mortgage, the interest rate you agree to pay, how long the term of the loan is and the fees you are charged when setting it up.
Find out how much you could save to help you find the best remortgage rates for your property with our mortgage calculator below. We also have mortgage calculators for home extensions and mortgage overpayments.
What Our Customers Think
What our customers say
John Charcol
0330 057 5173£Cutlers Exchange, 123 HoundsditchLondonEC3A 7BU
Excellent
2033 Total reviews
- 5★★★★★
Giles
Thank you so much to Ezra and Fiona for their help, not only finding us a great mortgage deal but being really helpful with all the bumps along the road. They provided an excellent, friendly and professional service. We got very quick responses to our emails and had very good experiences on the phone. I would certainly recommend John Charcol to anyone looking for a mortgage and will definitely be coming back for our future mortgage needs.
Posted - 5★★★★★
John
We are very grateful to Harry Limburn and Emily Gould for their assistance over the last few weeks in procuring our bridging loan. The works to our house are now underway. Efficient, friendly, encouraging, thoughtful …… we could go on but you get the gist! Based on the was that they looked after us I would thoroughly recommend John Charcol to anyone.
Posted - 5★★★★★
Anonymous
Friendly, competitive, flexible, and made the whole process easy to navigate! Damien worked tirelessly to find us the best rate and terms for a mortgage suited to our needs, and made sure we had very regular updates on the progress of our application from start to finish.
Posted - 5★★★★★
Laura
Damien was brilliantly helpful and made the whole process stress free. Excellent service.
Posted - 4★★★★★
Christopher
Gracias a todos puntualmente
Posted - 5★★★★★
Anonymous
I had a complex mortgage requirement that I couldn't get ant other broker to help with Shaahid picked it up and managed to get a lender that could get us the finance we needed Absolutely now way this would have happened without his help
Posted - 5★★★★★
Sophie
Steven was really helpful throughout the whole process. Always available to discuss any queries I may have and explain everything in an appropriate way. I would wholly recommend his services.
Posted - 5★★★★★
Anonymous
Recently contacted Andrew Ireland from John Charcol to help with remortgaging my daughters property and changing details of ownership. From the beginning, he was extremely helpful, professional and informed us of the ongoing process. Any queries were promptly answered and the whole experience was a positive one. I would definately recommend Mr Ireland and will use him again, if required.
Posted - 4★★★★★
Michael
competent salespeople make concessions to people very satisfied with their work
Posted - 5★★★★★
Ben
I just completed on my first property and am immensely satisfied to have had Jon Charcol as my broker. Katie Thomas and Maisie Reeves looked after my mortgage application, and I'm very grateful to them for the service they provided. Katie was able to clearly articulate the complicated world of mortgages to me when it was wholly new and unclear. Her advice I trusted, and this is invaluable as a first time buyer. Maisie dealt with my application during the closing stages and was very personable in her communication and interaction with the agents and solicitors. This was also greatly appreciated. One area for development would be a little more communication with the client in relation to expected timescales for the mortgage offer. That said, I'm still highly satisfied with the services provided, and will remain a client in the future. Thank you both!
Posted
Remortgages
Compare the latest remortgage rates and deals with our comparison tool and discover how this type of mortgage works, the process and if it’s suitable for you.
Debt Consolidation Remortgage
On this page we go through debt consolidation remortgages, how they work, when you can do it, the pros and cons, which lenders are available and more.
Remortgaging Guide
Remortgaging means to switch to a new deal with a different lender but stay in the same property. Learn about remortgage costs, valuations and see our advice.
Fixed Rate Mortgages
Compare the best fixed rate mortgage deals available now, learn about the different fixed term options, find out how the process work and read our FAQs.
Home Insurance
Do you want new home insurance to go with that new mortgage? Our in-house team can arrange bespoke buildings and contents insurance to suit your new requirements, for free.
Protection
With John Charcol, you’ll have the option of speaking to your very own expert protection adviser who’ll learn about your situation and find the right cover for your needs.
JC Legal
We can find you a solicitor to manage the conveyancing part of the process with JC Legal. We choose from an exclusive panel of carefully selected solicitors and conveyancers, saving you time and ensuring you receive excellent service.
Equity Release
It’s easy to overlook your property as part of your finances, but your home is probably the biggest asset you have. Release money from your home with John Charcol's partnership with Key Retirement. Find out more and start the process today.