Taking out a mortgage is one of the biggest commitments you will make, lasting anywhere from 6 months to 40 years, averaging on 25 years to pay off. It’s a cumbersome agreement that will follow you around for years, but the payoff is immense: owning your own home. It can be a bit of a headache shopping around for the best deals, so when you finally find your mortgage match, it can be tempting to make your regular payments and ignore the rest until it goes away. But that’s where you might be going wrong. You could be using tricks like remortgaging to your advantage.

Remortgage Magic: Should You Reshuffle Your Finances? - remortgage, mortgage, money, finances, broker

Making the most of your mortgage

The chances are, when you picked your current mortgage you were won over by an enticing rate deal that the lender had on offered, however after a few years these deals tend to run out and your interest rates can rise. Deal or no deal you may have just found a better rate elsewhere, and occasionally, even when you consider exit fees, switching it up can make all the difference and save you some money. If you begin to earn more money, you might be interested in the perks of a different deal, such as making over-payments, that your original lender would have charged you for.

Saving money isn’t the only consideration, sometimes you just need to borrow a little more and a good way to do that is through releasing some equity from your home. Your current lender might not always allow this, or you may feel you’re better off switching to a different product of theirs in order to do this, therefore remortgaging once again becomes a valuable option.

Whatever your reasons, don’t be put off by the hassle of trawling through all the deals again, go through a free online mortgage broker like Habito who can compare thousands of options for you and find a sweet deal without the fuss.

Is Remortgaging For Everyone?

While remortgaging has it advantages, there are several cases where you’d be better off sticking with your original deal for the time being. For example, if you or your mortgage partner have had a recent change in circumstances or either of your credit scores have taken a hit since setting your original terms, it may not be the best time to search for a better deal as you won’t be likely to find one.

In the cases of both having very little or extremely high remaining debt, you face little chance of finding better deal. Many lenders won’t take on small loans and the fees may deem it an unprofitable switch. On the other hand, it can be difficult to find a better deal when you have little equity in your property, so you should build this up before considering a switch.

Re-mortgaging can also be done as a reverse mortgage which is a special type of home loan program for seniors age 60 to an older which allows for you to take a refinance but not required to make monthly mortgage payments for your lifetime. This is a unique program that should be considered carefully as a strategic retirement tool but also cautiously as this loan is not suitable for all circumstances as a borrower you must remain in the home as your primary residence and maintain taxes and insurance. Otherwise, the lender can call your loan due and payable. Learn more about reverse mortgages and 2021 lending limits here.

Finally, remortgaging won’t always save you money. If you’re already on a great rate, there’s no need to change it, so enjoy your deal and consider some of these tips to pay your mortgage off faster while the odds are in your favour.