When to remortgage

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.

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.

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.

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.

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.

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.