There are times when it will be obvious that you can save money by remortgaging but in the wake of the credit crunch this may not be the case and indeed it may even be impossible to persuade a lender to give you greater funds. Interest rates on fixed and discounted rate mortgage products have been creeping up leaving many not far off a typical standard variable rate.
However those looking to borrow substantial sums running perhaps to tens of thousands of pounds for whatever reason may still find that the cheapest way of doing so on a monthly basis is to extend their mortgage. A lender may still be more than happy to do this if you have sufficient equity in your home. Do be aware however that you will be paying interest against such borrowing for a much longer period than a standard personal loan and it could end up costing you more overall because of that.
If you are looking to reduce your monthly outgoings you should be aware that any saving you make on the interest rate you pay by switching your mortgage will be at least partly eaten up by the transaction charges associated with moving your loan.
There may be early repayment charges and reservation fees demanded by your old and new lenders. You may face penalties as well as arrangement fees. Don't forget to add in surveyors and solicitors fees. So if you're considering a remortgage do your sums carefully. You may find yourself facing the equivalent of several months mortgage payments taking a serious chunk out of the financial benefits of remortgaging.
However those looking to borrow substantial sums running perhaps to tens of thousands of pounds for whatever reason may still find that the cheapest way of doing so on a monthly basis is to extend their mortgage. A lender may still be more than happy to do this if you have sufficient equity in your home. Do be aware however that you will be paying interest against such borrowing for a much longer period than a standard personal loan and it could end up costing you more overall because of that.
If you are looking to reduce your monthly outgoings you should be aware that any saving you make on the interest rate you pay by switching your mortgage will be at least partly eaten up by the transaction charges associated with moving your loan.
There may be early repayment charges and reservation fees demanded by your old and new lenders. You may face penalties as well as arrangement fees. Don't forget to add in surveyors and solicitors fees. So if you're considering a remortgage do your sums carefully. You may find yourself facing the equivalent of several months mortgage payments taking a serious chunk out of the financial benefits of remortgaging.
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