Remortaging – 5 Great Benefits

The observation that we live in fiscally challenging times will come as no shock to anyone who is repaying loans – or even simply paying their water, lights, and household grocery bill each month. The strain on personal and household finances is considerable and all it takes is a single unexpected occurrence, such as illness to make finding extra cash absolutely essential. Learn more about remortgages, visit mortgage advisors Sheffield now.

This is one of the reasons that remortgaging is such an attractive option. However, simply having ready access to cash to cope with emergencies is only one of the minor benefits of remortgaging a property. Here are 5 reasons why it makes sense for many property owners.

1. Emergencies

It’s worth mentioning once again that remortgaging can provide access to funds in case of emergency. Releasing equity can smooth over the bumpy road that life sometimes forces us to travel. But releasing equity should ideally be used for adding value to a property, such as performing renovations, or installing that dream sunroom. Each of these will add value to the property.

2. Save Money

Every single penny saved today is more valuable than it has been in decades – things are tough. Remortgaging offers the opportunity to negotiate better rates with a financial institution. You can stay with the financial institution that provided your mortgage in the first place – or you can contact a broker, or another financial institution yourself in order to get that great rate. Remember, a more preferential rate means monthly savings – and that money can be used for things such as consolidating debt (which will save you further money). Always remember that if you have built up a track record of payments, you are in the driving seat, and you have a record as a reliable client – that’s valuable to any financial institution.

3. Take Back Control

Remortgaging can provide the perfect opportunity for property owners to re-examine their payment responsibilities and the interest rate they are being charged. If the property owner (you) has a variable rate or even a fixed rate that is not the best that the industry can offer, perhaps it’s time for a change. Get your negotiating hat on and fix a rate that is better than the one that you are currently enjoying. This has the added advantage of providing you with certainty about this, avoiding the roller coaster of fluctuating monthly payments.

4. Embrace Change

Changing your rate can be just the beginning of restructuring your mortgage. If you find that you are in a position to pay extra some months, or you have an income that is variable you can choose another type of mortgage that allows you to enjoy more flexibility. More flexibility means less stress – and that is never a bad thing. 

5. Live a Little

Time is one of the few assets that is finite. You cannot buy more time on this Earth, no matter how wealthy you may be. You also cannot take your money with you when it is time to shuffle off this mortal coil, so why not have some fun with it while you are here? Of course, taking care of dependents is important – but remortgaging allows you the opportunity to increase the quantum of your loan. If you have been paying your loan for some time it is entirely probable that the value of your property has increased significantly – and that can make the challenge of increasing your loan amount much less daunting. That extra cash injection be used for a new car, or even that long-awaited overseas trip. After all, all work and no play make Jack a dull boy (or Jacqueline a dull girl). That time to just unwind may be more essential than you think – for both your mental and physical health.

Perhaps you don’t want to take that holiday – but you do want to be free of that monthly mortgage payment as soon as possible. Remortgaging can allow you to pay off your property-related debt much more quickly. Your circumstances will almost inevitably change over the years, hopefully for the better, and if you are making more money now than when you took out your home loan then you can afford to pay more. ARemortgaging can provide you with the ideal package that optimizes the number of months you have left on your payment schedule.

A mortgage is usually one of the most important debts you will be servicing in your lifetime, and getting a great rate or the right mortgage product are both great opportunities to improve your quality of life by reducing the levels of debt you have to service each month – or just spreading that debt so it becomes more manageable. If you need cash quickly – or want to explore a less stressful life, then perhaps a remortgage is something you should be focusing on.

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