Remortgage Advice
Reviewing Your Mortgage Deal
Many homeowners arrange their mortgage for an initial fixed period, often lasting two, three or five years. Once this period ends, the mortgage typically moves onto the lender’s standard variable rate, which can be significantly higher.
Remortgaging involves switching your mortgage to a new deal, either with your existing lender or a different one. This can allow you to secure a more competitive interest rate or change the terms of your mortgage.
Harmony Mortgages helps homeowners review their mortgage options and explore suitable remortgage deals.
Reasons People Remortgage
Homeowners remortgage for a variety of reasons.
These may include:
- Securing a lower interest rate
- Reducing monthly payments
- Releasing equity from their property
- Consolidating debts
- Funding home improvements
Reviewing your mortgage regularly helps ensure you are not paying more interest than necessary.
When Should You Start Looking?
Many homeowners begin reviewing mortgage deals three to six months before their current deal ends.
This allows enough time to:
Compare lenders.
Submit a mortgage application.
Avoid moving onto a higher interest rate.
Starting early can help ensure a smooth transition between mortgage deals.
Remortgaging vs Product Transfers
Some lenders offer existing customers the option to switch to a new mortgage deal without changing lenders. This is known as a product transfer.
While this option can be convenient, comparing lenders across the wider market may provide access to more competitive mortgage products.
Why Speak to a Mortgage Adviser Before Moving
If your property has increased in value, you may have built up equity. Some homeowners choose to release a portion of this equity when remortgaging.
This may provide funds for:
- Home improvements
- Property investments
- Major expenses
However, borrowing additional money increases your mortgage balance and should be considered carefully.
