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Remortgaging

What is a Remortgage?

by: John Mussi

A remortgage is changing your mortgage without moving your home.

Remortgaging is the process of switching your mortgage to another lender that is offering a better deal than your current lender thereby saving money.

A remortgage can also be used to raise additional finances by releasing equity in your property.

More detailed remortgage information

When you remortgage you are ending your old mortgage deal and switching to a new one. This normally involves switching your lender although you can sometimes change deals with your current provider. If you do remortgage with your current lender it normally involves changing your existing deal.

You can borrow from £25,000 up to £500,000. Rates are variable, depending on status.

It is important to note that there are costs attached to remortgaging such as redemption penalties. These need to be taken into account when you are considering a remortgage. It is however worth bearing in mind that often the benefits of remortgaging can outweigh the costs involved.

A remortgage deal on your UK house or flat should offer you:

  1. lower & discounted mortgage interest rates
  2. reduction of your monthly mortgage outgoings by up to 50%
  3. the chance to clear your existing mortgage, plus any arrears or other debts
  4. consolidation of existing loans into one easier-to-manage monthly mortgage payment
  5. release of equity in your house or flat for a new car, home
    improvements, luxury holiday etc.
  6. no restrictions on what you do with any extra cash raised
  7. the chance to borrow more money and still find you are paying the same or even less than your current mortgage repayment.

Benefits of a Remortgage

Remortgaging can allow you to get a better rate of interest and reduce your monthly mortgage payments.

A remortgage allows you to consolidate existing loans to one manageable monthly payment or raise money to buy a new car or home improvements.

Homeowners who want to raise money for home improvements, buying a car or other purposes often find that a remortgage to raise the money is cheaper than taking out a personal loan or using credit cards. This is because interest rates on mortgages are amongst the lowest of all the different types of loans.

Homeowners may wish to raise money to consolidate other debts. By taking advantage of remortgaging your property you could transfer several debts into one more easily manageable remortgage.

This means you can replace credit card bills, personal loans and other loans with one lower interest rate remortgage and spread lower payments over a longer period.

 

This information courtesy of http://www.directonlineloans.co.uk Click to see full range of loans



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