Reasons to Remortgage

So far we've looked at getting a better rate, changing the type of mortgage product you have, and getting more money through changing the mortgage amount.

But there are countless reasons why people decide to remortgage, some of which are more common of course than others.

Taking advantage of more attractive features is another reason why people may switch a mortgage. Imagine that you are now in the position where your salary has gone up. All being well this is often the case as people get older and their career advances. Now, when you took out the initial mortgage you didn't worry that you would get stung for making overpayments, but now that this is a real possibility you will want the option to make overpayments, knowing that doing so can greatly reduce the term of your mortgage and thus the total amount repayable.

In order to do this therefore you might decide to remortgage onto a product that does not have any penalties with making overpayments, even if the interest rate happens to be the same as your previous mortgage it can be worth it to take advantage of this flexibility. Similarly you may want to take advantage of other flexible features for other reasons: perhaps you are now self-employed and income can go up and down month by month and so you may want to have the option of a couple of payment holidays a year for months where your clients don't pay your invoices or you go without work, whilst then overpaying in the months where you have better than average income.

If you have accrued a lot of debt, then there an option called debt consolidation, whereby with some mortgage products you can actually increase the mortgage by bringing various other debts (such as loans and so on) into the mortgage; this will reduce immediate interest as mortgage rates are usually much less than those on credit cards and loans, although of course because a mortgage runs over so many years ultimately you may well end up paying more when all is said and done on those elements you bring into the mortgage, but you do have the convenience of having all the debt in one place.

For some, remortgaging is just something that they get into the habit of doing every couple of years, and whilst the product will be good enough for many, they might have had a bad experience with a bank or building society and show their protest by moving away from them when they are able to, so there really are a whole host of reasons why people might want to remortgage.

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