Re-mortgaging
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Most mortgage lenders offer mortgage deals at a rate for a specific number of years - whether a fixed rate, discounted rate, or tracker rate, and normally two, three or five years.
At the end of this deal period you are automatically moved onto the lenders’ Standard Variable Rate (SVR) which can be higher than other deals available or just put you at the whim of the lender and possible rate rises. Re-mortgaging can reduce your payments and/or provide the security of a fixed rate.
Re-mortgaging also gives the opportunity to rejig your finances, perhaps to consolidate some expensive finance onto a lower interest rate as part of the mortgage. This is known as “debt consolidation”.
It might also provide you with the opportunity to release equity, perhaps for an extension, home improvements or the deposit for another property.
It also provides the opportunity to review your financial situation, and make sure you are on track to clear your mortgage as early as possible and/or see if there are any ways of shortening the term.
Consolidating unsecured debts into your mortgage may increase the total cost of the debt by extending the term over which it is repaid and by securing the debt against your home it puts your home at risk if you fail to keep up with the repayments.