mortgage and remortgage

Remortgaging your home can be a great way of saving a significant amount of money each month.

Once you've decided to remortgage it's worth shopping around and deciding on the type of mortgage you want. You may want an interest only mortgage, with another saving plan to cover the capital repayment, or you may be happy with an interest plus capital repayment mortgage.

If it's a repayment mortgage, then there is the decision of whether you want a tracking, fixed rate or variable rate type, if it's the interest only, there are a variety of options to save for the capital repayment.

Whilst you're looking around, consider whether it would be worth taking some of the equity out of your home to pay off other loans, this can sometimes be a good option. It's worth bearing in mind that whilst this may decrease your monthly outgoings, the interest you pay on the borrowing may well be more as it's over a longer period of time.

It is also important to check for redemption penalties. Some lenders offer very competitive rates for 2 or 3 years, but lock you into their loan with a significant penalty to pay if you wish to change providers within say 5 years. Try to make sure any early redemption penalty does not "overhang" the competitive rate period.

Some useful places to start looking for competitive remortgage deals are:

Mortgage and Remortgage