Remortgaging means moving your mortgage to a new deal with a different lender, while staying in your home. It's often done to secure a more cost-effective arrangement — for example, when an introductory rate ends.
Debt consolidation
Some people remortgage to consolidate debts. It can simplify things, but it needs careful thought: rolling unsecured debts into your mortgage may increase the total you pay over the full term, and it turns unsecured debt into debt secured on your home.
Is it right for you?
Remortgaging isn't a one-size-fits-all answer. Savings from a lower rate can be offset by the fees of setting up a new mortgage, and a lower monthly payment might extend your repayment date. It's worth weighing the whole picture — and checking what your existing lender can offer, as many allow frequent switches.
Points to weigh
Securing short-term debts against your home can extend the term and increase the total payable. Your current lender may also charge early repayment fees. All of this is worth factoring in before you decide.
Important — please note
Think carefully before securing debts against your home. Your home may be repossessed if you do not keep up repayments on your mortgage or any other debt secured on it. Please note that some mortgages, such as commercial buy-to-lets, are not regulated by the FCA.
This article is general guidance, not personal advice. For a recommendation based on your own circumstances, please get in touch.