Although it may seem like a hassle to switch your mortgage, it is actually quite simple. These are the benefits you can look forward to when you remortgage.
Save Money
People choose to remortgage because they may be able to get a lower interest rate.
You may not have the best mortgage deal when you purchased your home. You could save hundreds, or even thousands of euro each year by switching to a lower interest rate on your mortgage.
You will not always be able to save money by changing your mortgage. It’s important to consult an expert and calculate the costs so that you don’t lose any money. You should know the rate you will pay after you have completed your fixed-rate period if you are switching to a fixed mortgage.
Sometimes, lowering your mortgage interest rate can reduce your mortgage term by a significant amount. This could even be a benefit for years. Switching can help you pay off your mortgage sooner by lowering the interest rate.
Get Cashback
Some people may not want to switch their mortgage because of the costs involved, such as legal fees and valuation.
These are not as important if your lender offers a cashback incentive to switch. These incentives can reach as high as 3 percent, which is often more than enough to cover the cost for a switch.
Any money you have left over could be used to make the home improvements that you’ve always wanted. There are many offers available, even though not all lenders offer cashback on remortgages.
Consolidating Loans
You may be able consolidate other debts that you are still trying to repay with your mortgage payment. This can help you budget a lot by reducing your monthly outgoings.
Consolidating your loan can save you money as higher-interest debts, such as Credit Union Loans or Credit Card Debts, can be transferred to lower interest rates by being bundled together with your house payment.
In some cases, however, you might have to pay more because you will be repaying debt over a longer time.
Make sure to run all of the numbers before you make any decisions. It is important to discuss the pros and cons to consolidating loans with an expert to determine if this is the right decision for you.