By: Jack Williams

As a homeowner in the UK, it is essential to understand the benefits of remortgaging when your scheme deal ends. A scheme deal is a fixed term mortgage deal that offers a discounted interest rate for a certain period, typically between two to five years. When your scheme deal ends, you will revert to the lender's standard variable rate, which can result in higher monthly payments. In this article, we will discuss why it is important to remortgage when your scheme deal ends.

Save Money on Monthly Payments

When your scheme deal ends, your monthly mortgage payments will likely increase, as you will be paying the lender's standard variable rate. By remortgaging, you can secure a new fixed rate deal or a lower variable rate, which can result in lower monthly payments. This can be especially beneficial if you are on a tight budget or want to save money for other expenses.

Access Better Deals

The mortgage market is constantly changing, and new deals are being introduced regularly. By remortgaging, you can access better deals that may not have been available when you took out your original scheme deal. For example, you may be able to secure a lower interest rate, longer repayment term, or other benefits that can save you money in the long run.

Avoid the Standard Variable Rate

The standard variable rate can be costly, as it is often higher than the rates offered by fixed or variable rate mortgages. By remortgaging, you can avoid the standard variable rate altogether and choose a new mortgage deal that suits your financial needs. This can help you save money on interest payments and reduce the overall cost of your mortgage.

Release Equity

Remortgaging can also be an opportunity to release equity in your home. Equity is the difference between the current value of your property and the outstanding mortgage balance. By releasing equity, you can borrow money against the value of your property, which can be used for home improvements, debt consolidation, or other expenses.

Remortgaging when your scheme deal ends is essential to save money, access better deals, avoid the standard variable rate, and release equity. However, before you remortgage, it is important to speak to a mortgage advisor, who can help you understand your options and find the best deal for your needs. With our expert advice and guidance, you can secure a mortgage deal that meets your financial goals and helps you achieve long-term financial stability.