Reviewing your mortgage with an advisor is a great way to get access to extra funds and make the most out of your biggest financial asset - your home. In 2023, remortgaging can offer you a range of benefits that can help you unlock financial freedom.

Staying with the existing lender or remortgage elsewhere

Choosing to stay with your existing mortgage provider is a much simpler process since you won't have to move lenders, resulting in fewer documents and costs associated with remortgaging however ultimately this may not be the best rate available based on your current circumstances and may cost you more if there are better deals available with other lenders.

Remortgaging with your current lender is also better known as a product transfer as this remortgage process entails switching from your existing deal but staying with the same lender. If you need to raise money for things like home improvements then you will need to complete a further advance if you choose to stay with your existing lender, this usually requires additional checks and can be different interest rates.

If you decide switching lenders is best for you, it can be beneficial as you may be able to access better rates and features. By taking advantage of the current market and switching to a new deal, you may be able to reduce your monthly costs if you secure one of the most competitive remortgage deals available.

What are the pros and cons of a debt consolidation remortgage?

One of the pros of consolidating your debt using a mortgage is that you can reduce your overall interest rates, especially compared to credit card debt. The high-interest rates on credit cards can accumulate quickly, leading to a longer period of time needed to pay off the debts. Conversely, a lower interest rate on mortgages makes them a more desirable option for consolidating loans, giving you the potential to pay them off sooner.

Another benefit of a debt consolidation remortgage is that they can lead to more disposable income thanks to the lowering of monthly outgoings. This can help you to save money, and ultimately put you in a better financial position.

However, there are also some cons to consider. One of these is the term of the debt, as mortgages are typically taken out over a longer period than a loan. Evidently, this could lead to paying off higher amounts over a longer duration.

Furthermore, some may find that there are fewer options available to them when trying to secure mortgage deals that consolidate their debt. This is due to certain factors, including missed payments and high-risk lifelines, which can impact their credit profile.

Another key risk is that your home is used as collateral when taking out a debt consolidation mortgage. This means there's always a risk of losing your property if your finances spiral, and bankruptcy may be your only option, which would also lead to losing your home.

Can I remortgage early?

If you are looking to remortgage early before your fixed rate deal has ended, an early repayment charge/exit fees may be payable which will need to be taken into consideration when discussing your affordability for the new mortgage deal. We will always advise you to remortgage before your existing deal goes onto the lender's standard variable rate as this is a much higher rate of interest.

By considering a remortgage in 2023, homeowners have the potential to benefit from reduced monthly mortgage repayments compared to what they may be paying on their current deal, access additional funds or switch to a repayment mortgage - all of which could help you unlock financial freedom.

Finally, remortgaging in 2023 can also give you the opportunity to switch from an interest-only mortgage to a repayment mortgage. This means that you would pay off more of your debt each month and could help you become mortgage free sooner.

We can provide tailored advice and find the best solution for your needs. Get in touch today to see how we can help you make the most of remortgaging in 2023, email us at [email protected] or call us at 0151 662 0188.