Mortgage home re financing mortgage debt consolidating
Fixed rate mortgage: A fixed rate mortgage will fix the interest rate you receive on your remortgage deal for a set period of time, but usually this period is between 2 and 5 years.If you expect the bank rate to go down then you could be getting a good deal, but if it goes up then you could be risking higher monthly repayments.Offset mortgage: With an offset mortgage, your mortgage and savings account are combined, and the money you have in your savings account is counted as a temporary overpayment towards your mortgage, which could save you thousands in interest.If you’ve already paid off the bulk of your mortgage then it may not be worth paying for a remortgaging deal as the savings you make will struggle to cover the cost of the switching fees.
To help yourself save money, compare the annual percentage rate (APR) between your current mortgage and other remortgage deals on the market, then assess whether or not this will better the costs.
Our guide to remortgaging can help you decide if switching from your current mortgage deal is right for you Paying off your existing mortgage with a new one can offer flexibility, a better deal on your monthly repayments or an opportunity to consolidate your debts.
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