So, what is a remortgage?
For those who aren’t sure, the best analogy to use is a phone contract. Most of us have had one at one point in our lives and understand the idea. You have a phone, on contract for typically 2 years, once that deal ends you usually pay a lot more so you go elsewhere and get a new more competitive deal…simple enough right?
Well, remortgaging a property isn’t enormously different in terms of concept.
When your deal ends, regardless of it’s a fixed rate that’s ending or a variable rate, you will almost always revert onto what is known as the lender’s standard variable rate ( SVR). The SVR is almost always significantly higher than your original rate so a majority of people remortgage to ensure they don’t pay the SVR and save money. The process in general is far simpler than a purchase application. Your Home may be repossessed if you do not keep up with the repayments on your mortgage. So, what do you need to consider?