If you already have a mortgage, you might sometimes wonder if a remortgage would be good for you or your family. Getting a remortgage isn't right for everyone, but this quick quiz can help you figure out if it's a good option for you.
- Do you have a mortgage with an interest rate that is higher than average?
If a person or couple has had a mortgage for a long time and has good credit, they can often get a better deal on interest rates.
So, if the interest rates on your mortgage are high, why not look into a remortgage that gives you much lower interest rates?
Find out what the going interest rates are for your type of property by shopping around locally and online. You might find that a remortgage can save you a lot of money compared to staying with your current lender.
- Has your credit score gotten better since you got your mortgage?
As we've already talked about, credit reports can change a lot over time.
Maybe you and your partner got your mortgage when you were young and didn't have a good credit history. Or maybe you got your mortgage right after you went bankrupt seven years ago. In either case, if you've paid your bills on time, your credit report probably shows that you should be paying less interest than you are.
If you work with a company that specialises in remortgage agreements, you may be able to get a lower interest rate, which will cut your payments by a lot. You'll have to pay some fees if you choose to remortgage, but if the difference in interest rates is big enough, you could save hundreds of dollars each year.
- Are you unhappy with the mortgage lender you chose?
If you're not happy with how your mortgage lender treats you as a customer—and don't worry, a lot of people aren't—why not switch to a different bank? If you get a remortgage, you can choose a lender that fits your needs better. This means you can choose a place that treats you like a person and not just a number.
Even if your remortgage lender is in another country and you can only reach them by phone or email, they may care more about your happiness than a traditional lender. Expand your search for a remortgage professional, and don't let the fact that they are far away stop you from checking them out.
- Do you want to get rid of a number of personal or household debts at once?
As part of a remortgage, many companies now offer great debt consolidation packages on a regular basis. By choosing one of these remortgage options, you can lower the amount you pay each month and, as a result, often cut your monthly bills by a lot.
Even though you still have to pay back the money you owe to your creditors, a remortgage can give you some breathing room, especially if times are tough and money isn't as easy to come by as it used to be.
