Most homeowners remortgage several times in their lifetime and there is no restriction on the number of times you can do this. However, if you are looking to remortgage whilst you are still tied into a deal with your current lender then you would have to factor in paying an early repayment charge for settling early.
Yes, you can remortgage to release equity in your home and then use the generated lump sum to pay off any unsecured debt. If you do not have much equity within your home, you could still remortgage and look for a better rate so that you can save money each month to put towards paying off your debt. Always speak to a mortgage advisor before securing debts against your home as you are likely to end up paying back more interest in the long run, although your initial monthly payments can often be much lower.
Ideally, you want to be looking to remortgage around 3 to 6 months before your current mortgage is due to end. This will give you enough time to research and get the new mortgage set up and ready to begin just as your last deal ends.
Remortgaging isn’t always the right option. If your financial situation has worsened since you applied for your existing mortgage, or if your property has dropped in value, you may struggle to find cheaper remortgage rates. If your income has fallen or your credit score has dropped, remortgaging might be difficult.
First, research which remortgage deals you may be eligible for, which, as well as the affordability of the loan, largely depends on your LTV. This is the proportion of your home’s value the mortgage represents. Typically, the more you own, which is the amount of ‘equity’ you have, the less the loan will cost you.
