Many borrowers are confused about why they should remortgage, if at all.
Hopefully we can show you your options.

Research shows that there’s a lot of misinformation about How to remortgage a property, here are some of them:

• Remortgaging is a negative thing, it’s only done when you are desperate.
• It’s “embarrassing” to admit having done it.
• You only remortgage to borrow more funds.
• You must be desperate to remortgage.
• There is a limit to how many times a borrower can remortgage.
• You just remortgage to take on more debt,
• Remortgaging is only done to carry out renovations.
• People remortgage when they are failing to meet existing repayments,
• Remortgage is difficult so it’s not worth thinking about their deal every 2 years for the next 30 years.
• If you keep remortgaging, you will never pay off your debt because you start again.
• Remortgaging is expensive.

Although, in some circumstances, some of these may be relevant, they are not necessarily so.

So, lets look at the real facts about How to remortgage a Property.

• Remortgaging isn’t negative, although it may be done to help a negative problem.
• It is very common, certainly not embarrassing.
• You can re-mortgage for various reasons.
• Most people who remortgage aren’t desperate to do so.
• You can re-mortgage as many times as you want to.
• People often remortgage just to get a better rate.
• Some people remortgage to carry out home improvements, it is a cheap way to raise capital.
• Remortgaging can be one way to help improve your financial situation, speak to an advisor to review your options.
• Remortgaging can be complicated if you do it yourself as the regulations are changing all the time. A good advisor will do all the work for you.
• It is a common misconception that if you keep remortgaging you will never clear your debt. This is not true if you don’t add the debt each time.
• Remortgaging can be expensive if you get it wrong, a good broker will work out the best deal to ensure that it will save you money, or tell you not to proceed.

If you think remortgaging isn’t for you, this “switching inertia” may be costing you dearly.

Number of people on Standard Variable Rates shows their is borrower confusion

The huge number of borrowers on a higher rate than they need be shows that remortgaging is “greatly misunderstood”.

The best way to remortgage is to give yourself plenty of time before any deal is coming to an end and contact an independent, whole of market (and preferably free) mortgage broker who can demonstrate your potential savings by switching.  By starting about four months prior to your deal ending you have the best chance do let your broker do their market research, speak to the lenders, get their remortgage applied for and approved before you slip on to a costly Standard Variable Rate.

If your deal is coming to an end, contact The Finance House now on 01273 857 024, we are an independent, whole of Market, experienced and Free Mortgage Advisor (We receive a commission from the lenders).

You can check us on the Financial Conduct Authority website here.