Remortgages

Things change constantly and mostly they improve - the same can be said of mortgages. Gone are the days when we took out a mortgage and kept it with one lender until the debt had been completely repaid. The whole world of mortgages has changed in the past few years. The remortgage market is vibrant these days, and investigating the market could considerably improve your finances. So why would you want to remortgage and consider switching your mortgage?

- You could get a better deal or rate than your current one: Are you sure that your current mortgage is the best one you can get? The market is competitive and mortgage providers are desperate to attract new business, usually by offering special deals to people who switch their mortgage over to them. This could give you a lower interest rate and lower monthly repayments, but remortgaging could net you other benefits such as a cash back or other valuable extras depending on the deal.

- Lock into a lower rate: Interest rates are still low, even taking into account the recent rise. Many experts are predicting that rates will begin to rise again over the next few months and years, leading to more expensive mortgages. By replacing your variable rate mortgage with one that has a rate fixed for a few years, you can protect yourself against future rises in the interest rate.

Other reasons to re-mortgage:

- Release equity that has built up in your home: As house prices have increased over the years, many people have found that they are sitting on a large amount of equity in their home - the difference between how much their house is worth and what the outstanding mortgage balance is. Taking out a remortgage will not only pay off your current mortgage but could also give you some extra funds for home improvements, or you could use it for debt consolidation or any other purpose. It is often cheaper to raise the money with a remortgage than by, for example, taking out a personal loan.

- Change your mortgage type: People's circumstances change over time, and what might have been an ideal mortgage a few years ago when you took it out might not be the most suitable for your current needs. Maybe you want to switch from an interest-only mortgage to a capital repayment one, or you might want to take advantage of some of the more recent features of mortgages such as flexible payments or offsetting - a remortgage can give you the chance to get a deal more in tune with your current circumstances.