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When to remortgage

Whether you want to cut your monthly payments, borrow more money or your personal circumstances have changed, there are many reasons you may be considering remortgaging your home.

In many cases, a remortgage is simply about changing to a mortgage that is more suitable for your current circumstances. But, how do you know when it’s the right time to remortgage your home?

Your current deal is coming to an end or has already ended

There is no hard and fast rule when it comes to remortgaging, as the decision will always depend on lots of different factors. However, it’s especially worth thinking about remortgaging if you’re nearing the end of your current mortgage deal or if you’re on your lender’s Standard Variable Rate (SVR) as your lender’s SVR is likely to be higher than other interest rates.

You want to borrow more

Depending on the amount of equity you have in your home, remortgaging may allow you to release some of this and borrow more money on your mortgage for things like home improvements, perhaps even on a lower rate than your current deal.

You want to overpay

If your financial situation has changed and you want to pay extra on your monthly repayments, but your existing deal won’t let you, a remortgage may make a more suitable product available to you. Making overpayments to your mortgage will allow you to repay your mortgage quicker and also reduce the amount of interest you pay over the term. At Newcastle Building Society we offer flexible overpayment options on most of our products.

Your home’s value has increased by a significant amount

If the value of your property has increased rapidly, you may find you’re in a lower loan-to-value band and eligible for lower rates.

You want to switch from a repayment to interest-only

In most cases, making the switch shouldn’t require remortgaging, your lender should be able to make the change for you. However, should you decide to change lenders it is worth checking that your chosen lender permits this as part of your application before you proceed.

When not to remortgage

There are many circumstances where remortgaging your home may not be the best option. For example, if your mortgage debt is small, you have little equity or you’ve had credit problems since taking out your last mortgage.

If you’re unsure as to the best approach for you, book an appointment with one of our mortgage advisers. They can help you find the right mortgage deal for your personal circumstances.