Changing your mortgage deal on the same property is known as remortgaging. It's a popular way of saving money: around 35% of mortgages issued are remortgages. The main reasons to change mortgages are as follows:
- to move to a lender with better rates or conditions
- to release some of the equity from your home
- to benefit from improvements in your credit rating.
Changing to a mortgage with a lower interest rate could save you money, but it might be more complicated than that.
For example, your current lender might charge you an early repayment penalty, particularly in the first few years of a mortgage. There are also extra costs such as surveys and legal fees. It is important to calculate whether the savings outweigh the costs.
What's more, there are so many different remortgage deals which all have different rates, offers and small print. If you want to do some shopping around, make sure you're prepared (see our Top 3 Tips for remortgaging).
Finding the best mortgage to change to...
We suggest it's wise to look around the whole lending market if you want to change your mortgage.
Fortunately an FSA-qualified adviser can do this hard work for you. As a service to our readers, we provide a free call back service so you can speak to a specialist remortgage adviser.
Advisers are FSA-qualified and impartial, so you can get a quote representing the whole market, with no strings or obligations.
» Go to our secure, 1-minute remortgage enquiry form.