3 powerful reasons why remortgaging your home could be the right choice for you in 2022

woman shopping for mortgage options online

As a homeowner, you may be concerned about the rising cost of living being reported around the UK.

According to a March 2022 report in the Guardian, the cost of living crisis is having a “devastating impact” on some families, with energy bills set to rise by more than 100%, in some cases, in the spring.

In response to rising energy prices, one potentially positive change you could make in order to mitigate your monthly outgoings could be remortgaging.

Indeed, your mortgage is likely to take up a large proportion of your expenditure each month. A Which? report claims that the average Scot spends 20% of their income on their mortgage repayments.

What’s more, a 2022 MoneyAge report reveals that homeowners could save £5,000 by remortgaging.

Yet despite the cost-effectiveness of remortgaging in many cases, a GoCompare survey found that 19% of homeowners have never switched their mortgage, and could be missing out on valuable monthly savings.

Read on for three tips on remortgaging in 2022, and how an expert can help you make a smooth transition to a better deal for you.

3 reasons you could consider remortgaging your home this year

Your circumstances are unique but, usually, homeowners remortgage in order to pay less each month.

If you are unsure whether it’s the right time to make this switch, here are three key reasons why you could consider remortgaging your home this year.

1. You are seeking more stability in your mortgage deal

Having a tracker- or variable-rate mortgage comes with some benefits.

For example, your monthly repayments could decrease if the Bank of England (BoE)’s base rate was lowered, as it was in 2020.

However, in March 2022, the base rate was increased to 0.75%, and inflation hit a historic high of 6.2%. Inflation could continue to rise, meaning that interest rates are also likely to increase as a result.

So, in an environment where interest rates are likely to change, a tracker- or variable-rate mortgage may not be the most stable option this year.

If you would rather know what you will pay month-on-month, you could switch to a fixed-rate mortgage. Remortgaging in this way will give you the certainty as to how much your repayments will cost each month for a fixed term, helping to provide peace of mind in this economically turbulent time.

2. You are coming to the end of your fixed term

If your fixed-rate deal is about to come to an end, you could see higher mortgage repayments if you don’t either switch to a new deal with your current lender, or remortgage with a new lender.

So, if you are approaching the end of your fixed rate period, it could be constructive to explore the option of remortgaging, and see whether there are more competitive deals available.

If you are not approaching the end of your fixed-rate period but would like to switch, you may still be able to remortgage, but there may be early repayment charges in this case.

3. You feel you are paying too much for your current mortgage

You may have already begun shopping around for a new deal, and found that your current mortgage repayments are higher than the other options available to you.

If you feel you are paying too much for your current mortgage, now may be the right time to make a change. As the UK experiences further economic volatility, it may be wise to opt for a reliable, cost-effective mortgage deal going forward.

There are many options available when it comes to finding a new mortgage

The good news is, there are lots of options available when it comes to finding the mortgage deal you want.

However, with so many options available, you could end up making a choice that isn’t suited to you in the long term.

Indeed, with so many deals available to homeowners, the choices can be overwhelming. As a result, finding the most appropriate deal for you can be tricky.

A mortgage expert can help connect you with lenders who might be able to offer a better deal.

Plus, working with a professional can take the stress out of the remortgaging process, so you can feel more confident about a decision that could ultimately affect your financial wellbeing for years to come.

If you are seeking valuable peace of mind when it comes to your mortgage, contact us today to speak to an expert.

Email [email protected] or call 0131 339 2281 to speak to us.

Please note

Your home may be repossessed if you do not keep up repayments on a mortgage or other loans secured on it.

Buy-to-let (pure) and commercial mortgages are not regulated by the FCA.

Think carefully before securing other debts against your home.

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