As a homeowner, you may be familiar with the concept of ‘remortgaging’. In Shrewsbury, this refers to the process of switching your current mortgage deal to a new one, whether it’s with the same lender or a different one. While the idea of remortgaging in Shrewsbury may seem like a hassle, there are numerous reasons why it could be a wise decision for you. In this article, we will explore the benefits of remortgaging in Shrewsbury and discuss alternative options that may suit your needs.

Lower Interest Rates:

One of the primary reasons individuals choose to remortgage in Shrewsbury is to take advantage of lower interest rates. Interest rates are constantly fluctuating, and if you obtained your current mortgage a few years ago, there may be better deals available now. By remortgaging in Shrewsbury to a lower interest rate, you have the potential to save a significant amount of money each month on your mortgage payments.

Reduced Monthly Payments:

Remortgaging in Shrewsbury not only allows you to save on interest rates but also enables you to reduce your monthly mortgage payments. This can be particularly beneficial if you are struggling to meet your current payments or if you wish to free up some extra cash each month. By opting for a longer-term deal through remortgaging in Shrewsbury, you can spread your payments over an extended period, thereby decreasing the amount you need to pay monthly.

Access to Equity:

Another advantage of remortgaging in Shrewsbury is the ability to access the equity in your home. Equity refers to the difference between your home’s value and the amount you owe on your mortgage. If you have been diligently paying off your mortgage, you may have accumulated a substantial amount of equity. Through remortgaging in Shrewsbury, you can release a portion of this equity, which can be utilised for home improvements, debt repayment, or other investments.

Switching to a Better Deal:

Remortgaging in Shrewsbury is also an excellent opportunity to switch to a better deal with your current lender or explore options with a different lender. This switch can result in lower interest rates, reduced monthly payments, and overall improved mortgage terms. It is always advisable to explore various deals to ensure you secure the best possible mortgage for your circumstances.

Alternative Options:

While remortgaging in Shrewsbury can be a great option for many homeowners, it may not be suitable for everyone. It is essential to consider other alternatives that may better align with your needs. One such alternative is equity release in Shrewsbury. In Shrewsbury, equity release allows homeowners to access the equity in their homes without the need to sell the property. There are two primary types of equity release: lifetime mortgages and home reversion plans. Lifetime mortgages enable you to borrow against your home’s equity and repay the loan when you sell the property or pass away. Home reversion plans involve selling a portion of your home to a provider in exchange for a lump sum or regular income. Equity release can be an appealing option if you prefer to access your home’s equity without moving or remortgaging in Shrewsbury.

In conclusion, remortgaging in Shrewsbury can be a beneficial choice for homeowners aiming to save money on mortgage payments, access equity, or secure a better deal. However, it is always wise to consider other options, such as equity release, to determine the best fit for your circumstances. When considering remortgaging in Shrewsbury, take the time to shop around and compare deals to ensure you find the most suitable mortgage for your needs.

To understand the features and risks, ask for a personalised illustration. Equity Release may come in the form of a lifetime mortgage or home reversion plan.

A lifetime mortgage may impact the value of your estate and it could affect your entitlement to current and future means tested benefits. The loan plus accrued interest will repayable upon death or moving into long term care.

A home reversion plan involves selling all or part of your home to a plan provider in exchange for a tax-free lump sum.

Date Last Edited: December 6, 2023