There are several good reasons it makes sense to remortgage regularly.
Significant savings
If you took out a loan when interest rates were high or a deal you had has now come to an end, the chances are that you can save money by switching.
Reduce your monthly payments
That’s not always the same as saving money overall, as sometimes the main way in which payments are cut is by extending the loan period.
But cutting your monthly outgoings can be important at times.
Borrow more
You may need extra money for a new kitchen, bathroom or an extension, for example.
In theory, you could almost certainly borrow the same amount of money from your existing lender.
But sometimes the act of borrowing can serve as a catalyst for going somewhere else.
Debt consolidation
If you have lots of debts, some of them on exorbitant rates of interest, a mortgage at a lower rate will often help.
But beware: Your home may be at risk if you default on payments, as a mortgage is secured on your house.
Next article in this section: The savings from remortgaging
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