What to consider when remortgaging
If you’ve been thinking about remortgaging, this one’s for you.
The world of remortgaging can be complicated, with acronyms and jargon galore. There are a few things to keep in mind to make sure you’re making the best choice for your financial situation. Read on to learn more!
The first thing to do is read up on your current mortgage terms and check if it’s working for you. (If it ain’t broke, don’t fix it. But if it’s broke then it’s time to fix it!). Generally, people think about remortgaging when their fixed rate deal is coming to an end, so if this is you, it’s time to chat to a mortgage broker about your options!
Take a look at your interest rate, the monthly payments you’re making, and the type of mortgage that you have. Understanding your existing mortgage and what that means for you in practical money terms will help you determine whether remortgaging makes sense for you.
Next, you’ll want to check your credit score. If you have a high credit score, you’ll be able to access better mortgage deals (and who doesn’t want a great deal?). If your credit score is low, it’s not the end of the world – you can take steps to improve your score before applying for a new mortgage.
Think about your financial goals and the reasons why you want to remortgage. Is it because you want to lower your monthly payments? Do you want to access some of the equity for home improvements? Is your current deal coming to an end? Whatever your reasons for remortgaging, your life goals will influence the type of mortgage you choose.
Take a moment to consider the long-term implications of getting a new mortgage. When you’re looking at the deals available on the market, calculate how much you’ll save or spend over the life of the new mortgage compared to your current one. Running the numbers will help you make sure that the benefits of remortgaging outweigh the costs, and will help you make a final decision.
The best thing anyone can do is talk to a whole-of-market broker about their situation. They’ll be able to provide expert guidance and help you navigate the complex world of mortgages to find the solution that’s perfect for you.
Remortgaging can seem scarier than Halloween, but if you weigh up the pros and cons and make sure to compare the costs and think about your long-term goals, you’ll be in the position to make the best decision for you and your situation.