Switching your mortgage to a different lender can be a powerful way to save money. It's known as remortgaging, and as many as 30% of mortgage enquiries are for homeowners wishing to switch to a better mortgage deal. Here are some of the main benefits:
- to move to a lower interest rate;
- to release equity if your home has gone up in value;
- or to move to a prime mortgage, if your credit rating has improved.
Switching your mortgage to a lower-interest deal could save you money, but there might be some complications.
For example, there may be a penalty for redeeming your existing mortgage, particularly if it's within the first few years. Then you need to calculate extra costs (such as surveys and legal fees) and make sure the total savings are worth the effort of switching.
There are literally thousands of 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 3 top tips for remortgaging).
Finding the best mortgage to switch to...
We suggest it's wise to look around the whole lending market if you want to switch 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 unbiased, so you can get a quote representing the whole market, with no strings or obligations. Simply fill in the form to get a free call back and start comparing remortgages today:
» Secure, 1-minute enquiry form.