Are you looking to remortgage your property and need to find out more about the process? We’re here to help. There are various reasons as to why people choose to remortgage a house, but for the majority of people, it will become cheaper for them to do so. Whether you have debts to consolidate or are looking for a better deal for your mortgage there are options to do just that.
But it can be a nerve-wracking process, especially if you haven’t got to grips with what you need to do, and the whole practise behind remortgaging. To help you out, here’s the truth about remortgaging…
What Is Remortgaging?
Remortgaging describes the process of a homeowner swapping their current mortgage for another one. This can be with a completely new lender or even with the same lender just a better deal.
It is fairly common for people to remortgage their property as circumstances change which often means that what you may have been able to afford 5 or 10 years ago, you may not be able to now. The market and interest rates may have also changed meaning you’re not getting a good enough deal. In these cases, you can simply remortgage your home with a new or same lender for a better deal.
It gives you the opportunity to save money and potentially in the long term pay off your mortgage quicker. It usually takes between 30 – 60 days for your remortgage to be processed.
What Do You Need To Consider During Remortgaging?
Remortgaging can seem like an exciting prospect and the thought of saving money or paying your mortgage off earlier is very attractive. But with anything in life, there are negatives. Before you look at remortgaging, you’re going to need to consider the following and work out if remortgaging is best for you:
- Early repayment charges – These are additional charges if you’ve overpaid or paid your mortgage too early.
- Property value has dropped – This may cause negative equity and due to this may mean that the amount you owe is a bigger proportion than when you first purchased the property.
- Your mortgage debt is small – In some occasions, if you don’t have much left on your mortgage, you may not actually save any money, and lenders may not actually give you a mortgage.
- Credit problems – If you’ve had some credit problems since you first got a mortgage, you may struggle to get another one.
These can all affect whether you want to remortgage and whether you actually can do it. But don’t forget that you should also consider what mortgage is suitable for you. Make sure you think about the repayments, and if you want an interest-only, fixed-rate or variable-rate mortgage.
No matter what you choose, we can give you a helping hand. From initial advice in helping you understand your situation to working closely with you to ensure all legal documents are correct, and that you are set up with your lender. Speak to our friendly team today for any advice you may need…