Have you recently reached the end of your fixed-term mortgage period? If so, you may be wondering what your next steps are. In this blog post, we’ll explain why remortgaging after a fixed-term can be a great option for UK home owners.
What is Remortgaging?
Remortgaging is when you take out a new mortgage to replace your existing one. This can be done either with the same lender or with another lender. It’s important to note that when you remortgage, even if it’s with the same lender, it will be considered a new loan and will not carry over any terms from the previous loan. So, why should you consider remortgaging after your fixed-term ends?
Benefits of Remortgaging After a Fixed Term
One of the main benefits of remortgaging is that it could help you lower your monthly payments. When you took out your original loan, interest rates were likely higher than they are now; therefore, by remortgaging now, you could take advantage of those lower rates and save money each month on your mortgage payment. Additionally, depending on the type of loan that you select and the length of time for which you take it out (e.g., 15 years vs 30 years), you may also have an opportunity to build equity in your home faster than before.
Another benefit of remortgaging is that it could allow you to access some additional cash if needed. For example, if there is an emergency or unexpected expense that comes up, taking out a larger remortgage loan can give you some financial flexibility and peace of mind knowing that everything will still be taken care of without having to find outside financing options such as personal loans or credit cards with high interest rates.
Whether or not remortgaging after the end of a fixed-term is right for you depends on several factors including current interest rates and how much equity has been built in your home since taking out the original loan. Evaluating these factors and understanding all of the pros and cons associated with remortgaging can help ensure that any decision made is in line with both short-term and long-term goals for homeownership success!
