Why do people remortgage?
You might not be aware that around a third of all home loans made in the UK are actually remortgages.
There can be a whole host of reasons why people choose to remortgage. But the main reason people remortgage is to save money by moving on to a lower, better rate.
Other reasons people remortgage
A lot of people choose to remortgage because their current deal is about to end and they don’t want to get stuck on their lender’s standard variable rate as its likely to be higher than their old interest rate and higher than the best buys available.
Also, if you know your home’s value has risen since you took out your mortgage, you may want to consider remortgaging as you may find you’re in a lower loan-to-value band and eligible for much lower rates.
Alternatively, you may want to remortgage to borrow more money. Maybe your current lender has refused to lend you extra money, or the terms its offering aren’t very good. But, remortgaging to a new lender might allow you to raise money cheaply on low rates. You could use the money you borrow to fund home improvements, pay off other debts, or to fund a much-needed holiday – whatever you choose to spend your money on is entirely up to you.
There are many reasons why people are choosing to remortgage and the statistics represent that as remortgaging hit a 10-year peak as homeowners locked in cheap deals at the end of 2018.