Remortgaging needs careful thought

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For most people, their mortgage is their biggest financial commitment. Money Saving Expert provides some useful hints and tips if you are thinking about remortgaging, and ways you may be able to save money:

The shorter the term of your mortgage, the less interest you are likely to pay over the long term – but it does mean your monthly repayment may be higher, so make sure its affordable for you.

This may be possible but be careful as if you are tied into an initial deal then you might have to pay an early repayment charge which can be huge, often 2-5% of your outstanding loan. Plus, there is usually a small exit fee (it might call it an ‘admin fee’ or a ‘deeds release fee’) when you repay any mortgage.

If the value of the property has risen rapidly since you took out your mortgage, you may find you’re in a lower loan-to-value band, and therefore eligible for much lower rates. Again, you need to do your sums but it’s definitely worth a look.

There are pros and cons to remortgaging, so be sure to read more about the reasons why you shouldn’t, before you make any decision.

  • The information provided in this article is for guidance and educational purposes only. Police Credit Union Ltd. does not offer regulated financial advice. Please seek independent financial advice.

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