Remortgaging your home can be a scary decision to make. After all, one of the biggest benefits of having a mortgage is that you can eventually finish paying it off. Despite this, there are circumstances where re-mortgage your home could be financially beneficial. Here are a few.
1 – Invest in a business
Investing is usually risky, and investing in a brand new business is even more risky. But if you find yourself with a once in a lifetime investment opportunity and no other way to get more money, remortgage your home might be the way to go. If the investment turns out to keep its promise, you can pay the bank later and pocket the profits.
If you are starting your own business and it’s a passionate job, repurposing your home to support it may also be worth it for personal reasons. Keep in mind that the risk is higher the younger the business – according to the Department of Labor Statistics, more than 40% of new businesses do not go beyond the first five years.
2 – You have found a better offer
Remortgaging your home is not just a tool to get more money from your current mortgage lender. You can also use it to change providers. Keep an eye out for offers that give you a better rate on your mortgage or better terms than what you currently have. Making a change can also be worth it if you don’t like the service you got from your current lender.
The offers available to you will depend on a variety of factors, including how much of your mortgage you’ve already paid and your credit score. But a bad credit score is not the end of the road if you are looking for a good deal of remortgaging; the information available on the 1st UK homepage can help you if this is your case.
3 – Help your career
There are many circumstances in which you might need an injection of money to advance your career or to make your job easier. As a business owner or independent operator, you might need a little more money to invest in the expensive equipment needed to take your business to the next level. You may also find that a car will make your job easier or allow you to seek employment opportunities in areas further away from your home.
4 – Buy another property
Depending on the value of your current property, remortgage to buy a second home can be a good investment. You can rent the second home to pay off its mortgage, and then you will have two properties that will only increase in value over the years. If you are buying a home in an area where seasonal rental is common, you and your family can also go and enjoy the home in the low season.
5 – Debt consolidation
Remortgaging your home can be a quick and easy way to consolidate your debt with better rates. Just use the money you get from your remortgaging transaction and pay off all your unpaid debts. When it comes to debt consolidation, this is one of the easiest methods out there.