Many people choose a fixed rate mortgage for the couple of years and once this term ends they think whether or not to go for a remortgage plan. If you are among these people still wondering what is the best to do in this situation you need to read on and find out some things that you should consider. They will help you decide in making your choice in a way that suits the best your particular situation.

  • One first thing to consider is the new interest rate that will be set for your remortgage plan. You may be surprised to realize that the rates could be the same irrespective of your choice: going for a variable rate of the current mortgage or going for a remortgage plan. However, when you say variable rates chances are for these rates to increase over the years even if the predictions go for lower rates in the near future. Therefore opting for a remortgage it can be more sensible in this case.
  • Another thing that worth considering with the remortgage is the savings you can do over time if you opt for this financial help. In order to make sure that it can save you more money in the long run you should know how long you plan to live in this house. Keep in mind that a remortgage can take up to 30 years to be repaid and for this fact, you should make sure that you will spend more than a couple of years in this house. Thus you should come to a conclusion whether or not you can save more money on the interest in the long run to really worth applying for a remortgage. Also having an equity built in your home, your monthly payments will go considerably lower.

As a conclusion to the things described above: it is worth applying for a remortgage plan once your fixed rate period reaches an end and if you stay in the house for many years. This is definitely better if you suspect that the interest rates will rise in the near future. In case you are planning to live in the house no longer than two years, then you wouldn’t have to consider remortgage as your next financial move. It wouldn’t save you money as it would have if you were to live longer in the house.

However confusing all these may still be for you, it is time to take action especially if you know that your fixed rate period is about to end. Think also of consulting with a financial advisor about their opinion in your particular situation. Maybe your credit record won’t allow you to resort to a remortgage plan or who knows what else?! With the assistance of a financial consultant you will know what your best option is for the future.

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