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. It’s worth thinking about remortgaging if you’re nearing the end of your current mortgage product but make sure you find out if there are fees for exiting your deal early. 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. You can do this for things like home improvements, perhaps even on a lower rate than your current mortgage product.

If your financial situation has changed and you want to pay extra on your monthly repayments, but your current mortgage product 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 lower the amount of interest you pay over the term. At Newcastle Building Society we offer flexible overpayment options on most of our products, within certain limits.

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 mean 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 allows this as part of your application before you move forward.

There are many situations 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.