Professional Services

Remortgaging: what are the possible benefits?

Recent research conducted by data insight firm CACI shows that around £39 billion worth of mortgage deals are expected to have matured in January alone, with many predicting 2022 to be the year of the remortgage. With energy bills set to rise again, and the recent Bank of England base rate increase, now could be a sensible time to check your product is working for you.

Although the main reason to remortgage is often to save those all-important pennies, it’s certainly not the only reason why it can be a shrewd move. Why else might remortgaging be right for you?

1. More payment flexibility - your current mortgage may not allow you to make overpayments. If you feel this would be useful, remortgaging to a more flexible product may be advantageous.

2. Better terms - when you took out your mortgage you may recently have become self-employed, had a poor credit score, or perhaps used the government’s self-employment income support scheme (SEISS) during lockdown and found that it affected the terms available to you. You may also find that your current lender isn’t willing to offer you a new product or term extension. If your financial circumstances have improved, remortgaging could get you a mortgage with lower monthly payments or better terms.

3. Accessing equity - if your property has increased in value, or your mortgage has decreased, you can release some of the equity by remortgaging, which you may be able to use to make home improvements such as a loft conversion or extension.

4. Switching to a different rate - if you currently have a variable rate product and are looking for the security that a fixed rate could provide, remortgaging to a new product is something to consider. On the other hand, you may currently have a fixed rate product and are keen to see whether moving to a variable rate could save you money.

At Newbury Building Society, we pride ourselves on providing a tailored service to fit your unique circumstances. If you’d like to talk to a qualified mortgage adviser about your options, contact us today.

Andover branch: 35 High Street, Andover, SP10 1LJ Call: 01264 361455 Email: andover@newbury.co.uk

Cliff Osborne, Andover Senior Branch Manager.

YOUR MORTGAGE IS SECURED ON YOUR HOME. THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.

Newbury Building Society is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority (Financial Services Register number 206077). English Law applies and we will communicate with you in English. We are participants of the Financial Ombudsman Service. We have a complaints procedure which we will provide on request. Most complaints that we cannot resolve can be referred to the Financial Ombudsman Service. 8634 Newbury