Winchester Magazine Christmas Issue 2017 Winchester Magazine Christmas Issue 2017 - Page 71

PROPERTY GIVE YOUR MORTGAGE AN MOT Reviewing your mortgage can have big benefits, says Lisa Wedge from Newbury Building Society A ccording to figures released by UK Finance, more people are remortgaging than ever before, with 36,800 UK home owners making the move in July alone – the highest level since 2009. “For most people their mortgage is their biggest financial commitment,” says Lisa Wedge, branch manager at Newbury Building Society in Winchester. “It’s no wonder many are cautious when deciding whether to stick or switch lender. This can make the process feel daunting, but it doesn’t have to be. “Remortgaging has fast become a way for many of us to not only save money but also to release equity and negotiate mortgage terms to fit with change in personal circumstances. It’s also a great way to benefit from increases in house prices: “If your property has grown in value, or your mortgage has reduced, a home owner can also release equity by remortgaging. This is particularly useful for people who want to carry out home improvements to increase the value of their properties before selling, or raise capital for another purpose.” Lisa adds, “Talking your financial position over with our team in Winchester can make a big difference to monthly outgoings. Just like looking for a new electricity supplier, by shopping around and switching lenders you could lower your monthly repayments, leaving you with cash to spend on other important things.” 01962 852716 | “While remortgaging isn’t compulsory, switching to a lower rate could save you hundreds of pounds a month. If your property is valued at £300,000 and you have a mortgage of £200,000 with a term of 25 years on a capital and interest basis, if you remortgage to 3 per cent instead of 4.2 per cent you could save around £130 a month. That’s £1560 a year. “Often when home buyers first take out a mortgage there may have been a reason why they were offered a more expensive product. If your financial circumstances improve, remortgaging could result in lower rates of interest, and therefore lower monthly payments.” Remortgaging can also give peace of mind in uncertain times. “People don’t just remortgage their homes to raise capital,” Lisa says. “Remortgaging can actually help you find a more secure deal or flexible payment plan. For example, if you currently have a variable-rate product and worry about increasing interest rates, remortgaging to a fixed rate offers financial stability too.” 71