As a homeowner, it is always wise to ensure that you are getting the best possible deal on your mortgage. One way of achieving this is by remortgaging. Remortgaging simply means switching your existing mortgage to a new one, usually at a lower interest rate or with better terms. It might seem premature to consider remortgaging so soon but doing it six months in advance can help you reap various benefits. In this blog, we will discuss the benefits of remortgaging six months in advance with Mortgages by Whiteworths Ltd as the broker.
1. Time to shop around
When you start thinking about remortgaging six months in advance, you have ample time to explore different mortgage options. You can take time to familiarize yourself with mortgage rates and structures, research lenders, and compare fees and charges. With adequate time, you can work with your broker, Mortgages by Whiteworths Ltd, to navigate the market and select the best possible mortgage deal that suits your financial goals.
2. Better rates
By remortgaging six months in advance, you can leverage market economies of scale. Generally, the mortgage market is highly competitive, and lenders tend to adjust their rates to be more attractive to potential customers. Remortgaging early can therefore help you take advantage of favorable interest rate conditions.
3. Reduce monthly payments
By obtaining a mortgage with lower interest rates or refinancing to a different term (for example, extending your term from 15 years to 20 years), you can potentially lower your monthly mortgage payments. This may give you more disposable income that you can redirect into other areas of your life.
4. Access equity
As you start the remortgage process earlier, you may realize that you have built up some equity in your home. This equity can be accessed through a remortgage to fund financial goals such as home renovations, education or consolidation of existing debts. Mortgages by Whiteworths Ltd offer various remortgage options that can help you access equity in your home.
5. Locking in rates for longer
By remortgaging early, you have the luxury of choosing a longer fixed-rate term that locks in the interest rate for a longer period. This means you can budget your finances for a longer period with some certainty, knowing that your mortgage payments will remain predictable. Mortgages by Whiteworths Ltd can help you understand which fixed-rate term is best for you and for how long to lock in.
In conclusion, remortgaging six months in advance can be a wise decision for homeowners. With Mortgages by Whiteworths Ltd as the broker, you can take advantage of better rates, have more time to shop around, reduce your monthly payments, and access home equity. Don't wait until the last minute to explore your options. Start early and consult with your broker to find the best remortgage deal suited to you.