Wondering what your home is worth? Find Out Now

When to Remortgage Your Home


The process of a remortgage is simple: you take out a new mortgage on your home to either replace or improve your pre-existing mortgage or to take out a loan against your property to cover repairs or upgrades.

While many people choose to remortgage their homes at some points during their ownership, the decision of when and how to remortgage a home is critical, and it’s important to go into it carefully.

With that in mind, read on for signs that you should remortgage your home and a few big signs that you should wait.

When You Should Remortgage Your Home

If you’re in any of the following situations, remortgaging your home may be the smart choice:

1. Your current mortgage is about to reach the end of its best terms

Many quality mortgages only last a short time – often between 2-5 years – and if yours is about to end, remortgaging may be a great idea. In addition to saving you an enormous sum of money, remortgaging may also allow you to secure a fixed rate or a lower interest rate on your new loan.

2. You’re unhappy with your current mortgage rates

One of the main reasons people choose to remortgage is to secure a better interest rate. By remortgaging your home, you may be able to score a lower interest rate and lower monthly payments, so it’s well worth looking into if you’re unhappy with your current terms.

3. Your home has increased in value over the last several years

Your home’s value impacts your mortgage rate and payment, and if your property has become much more valuable since you purchased it, remortgaging may be an excellent way to secure a lower rate and save yourself some money every month.

4. Your current loan has a prepayment penalty

If you want to overpay your loan or pay it off early (without penalties), remortgaging can be a wise move. In addition to allowing you to secure a smaller loan and enjoy cheaper rates, remortgaging can also help you pay your loan off early and save money in the long-term.

5. You want to take out a loan against your property

If you’re looking to improve your home or make some significant repairs, remortgaging your property can give you the funds you need to do it. What’s more, remortgaging your property will likely allow you to take out the money at a low rate and pay it back over time.

Is Remortgaging Right for You?

There are dozens of benefits to remortgaging a property, and if you find yourself in any of the above situations, remortgaging may help you save money and secure a better loan.