When Is It Best To Refinance Your Property?
Many homeowners and BTL landlords are nearing the end of the term of their fixed-rate mortgage…
✅ With interest rates rising on a regular basis, it makes sense to determine if early refinancing would save you money in the long run. It goes without saying that you should avoid being automatically switched to your lender’s standard variable rate. If your personal circumstances have changed and you are concerned about the lending requirements, the obvious first step is to speak with a professional mortgage broker and get an illustration of your mortgage options.
✅ Leveraging equity from your property can be used for a variety of purposes. Several of my clients have opted to remortgage in order to free up funds to invest in another investment property. Others will simply utilize their equity growth to negotiate a better rate on their new fix by lowering the LTV on their next mortgage product and creating a financial cushion.
✅ When refinancing, consider the whole cost of the loan, including all charges and fees, rather than simply the interest rate. Then, like for like, compare them. All else being equal, property investors would choose a 5-year fixed-rate arrangement over a 2-year fixed-rate deal just to avoid all the extra fees and charges all over again…
