David McCann, director of Clear Finance, explains why it is a good time now to look into remortgaging or releasing equity in your home.
An interesting statistic shows that around two thirds of all UK home owners have not yet taken advantage of current low interest rates by remortgaging their existing property, therefore the vast majority of home owners could be paying too much on their mortgage by staying with their existing lender.
It is understandable that some people are resistant to change, but you could save thousands of pounds each year by making the switch and reducing your interest rate. There are options open to everyone, including those who have been through troublesome financial times or who have even been on credit repair schemes and are now back on track financially. Switching deals may well get you a lower rate or better benefits, so it is worth at least speaking with a remortgage expert.
Not only might you be able to lower your rate, but there may also be the option to release equity tied up in your home. Today you can remortgage for almost any reason: you may wish to make home improvements, purchase a new car, take a well deserved luxury holiday or consolidate any outstanding credit commitments (such as credit cards, loans, hire purchase and so on). These are just some of the many things you can do with the cash tied up in your home - and your monthly repayments could still be lower than they are at present.
It makes superb sense to remortgage. Making home improvements, such as an extension on your home, could add greater value to your property in relation to the additional funds you have raised. Remortgaging could enable you to start up your own business or fund the purchase or part purchase of an investment property you were seeking as your alternative retirement fund. And if you have several credit cards with large outstanding balances and exorbitant rates of interest, or if you are even in financial difficulty, it could save you money - both in the short term by reducing your monthly expenditure, and in the longer term by costing less overall. Remortgaging can provide you with a clear solution for almost all instances and is a more streamlined process than a house purchase, taking less time to complete.
So think about it. Maybe you could save money by remortgaging or by raising additional funds to go ahead with your plans, or both. Now is an ideal time to make that decision and to take full advantage, before rates rise too much. Remortgaging makes sense, and that is why it is becoming increasingly popular in the UK.