Re-Mortgage UK

Remortgaging is a good way to make savings on your mortgage payments along with getting hold of some extra cash. However, you need to be able to balance these advantages against the fact that you could end up mired in a sea of debt, and committed to an unsuitable and expensive deal unless you are covered against the pitfalls.

There are three main reasons to remortgage: to cut your monthly repayments; to release equity you have built up in the property; or to fix your rate.

The first is straightforward. If your special offer period has ended and you are now paying a lender's standard variable rate (SVR) you could probably get a lower rate elsewhere. In fact, you have probably seen your lender offering a better rate to new borrowers. By moving to a lower rate you will cut your monthly repayments.

Take, for example, an £80,000 repayment mortgage. If the lender's SVR is 5.75%, your mortgage repayment is £508.80 a month. By switching to a deal with a pay rate of 4.25% you can cut your repayment to £438.40 - a difference of £70.40 each month.

Another reason to remortgage might be to release value that has built up in your property, perhaps as a result of rising house prices. In this instance you would take a new mortgage for the value of the property, not just the amount you owe your existing lender.

For more information regarding mortgages and for the fastest online application visit
Loans UK