However despite this many people willingly go through the process again in the sense that they remortgage, and some do this several times during the lifetime of their mortgage balance.
Why? Well, the answer is simple: to get a better deal, and ultimately pay back less money. Particularly when interest rates are higher there is often a big incentive to remortgage to get a lower interest rate, with that more competitive deal ultimately having the potential to save you thousands of pounds.
And so that's the main reason why people remortgage: to get a lower rate. The savings can be compelling, and if you can reduce your rate by 1% then (depending on the size of your mortgage, of course) then you can save many hundreds of pounds every year.
Another main reason would be if your circumstances have changed. We never quite know what is around the corner and circumstances can change. Where in the past, for instance, you might have been happy with a fixed rate mortgage, you may now decide you want to move to a variable rate mortgage, or indeed vice versa. By remortgaging you can have another go at getting the best mortgage product for you which may have changed since you took out the mortgage that you currently have.
One more consideration would be if you want to actually change the sum of the mortgage, for instance to increase in slightly to give you a bit more money with which to make changes to your house: for instance to add that conservatory you have always wanted and so on.
So it can be seen that there can be many possible incentives to remortgage. In the other article on remortgaging we look at some other reasons to remortgage.
More property related articles:
- Repayment Mortgages
- How to get planning permission
- Agricultural Mortgages
- Mortgage Comparison Tables Explained
- Mortgage FAQ
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