Remortgaging is the name given to replacing your current home loan with a new mortgage – a move you should never be afraid to make if doing so makes financial sense.
For most homeowners, remortgaging is an opportunity to save money on monthly mortgage repayments. With interest rates at an historic low, the chances of getting a better rate than your previous mortgage deal are very high, so whether if you are coming out of a two, three, four or five-year deal, a better one almost certainly awaits you. Remortgaging can also move you from an interest-only mortgage to a repayment mortgage.
In the months before you are due to remortgage you should begin shopping around to see what deals there are on the market. Medical professionals can access preferential rate through medical mortgage advisers, so it’s worth getting in touch with one as soon as you begin your search. If you leave it too late, you risk being transferred onto your lender’s standard variable rate which could be considerable higher than the rate you are currently on.
On occasions, it pays to leave a mortgage deal and begin a new one if (when your factor in the cost of any departure fees) the savings you can make outweigh the penalties of an early exit. Remortgaging needed be stressful – it is something you should always consider doing on a regular basis to make sure that you continually get the best mortgage rates available to you.
For some medical professionals, remortgaging allows the release of equity to pay for home improvements or pay off existing debt.