Remortgaging can represent a brilliant way to liberate a portion of this asset to use on other things., renegotiating the terms of your mortgage, for some, is a savvy move. However, this does depend largely on your own personal circumstances, so it’s highly recommended that before jumping in with both feet, you discuss the wisdom of remortgaging your property with a trusted mortgage or financial advisor.
Some of the main reasons you will look to remortgage;
To Save You Money
When remortgaging your property, there are two primary ways in which it can be done. The first is to stay with your current mortgage lender and renegotiate a new deal, with the second being to search for a better deal with a different company to save yourself money. In either case, it’s vital that you really look at the fine print of any new deal you’re signing up to and make yourself aware of all extra costs you’ll be paying such as legal fees, booking fees and valuation fees.
To Increase Borrowing
Another reason why many choose to remortgage is to increase the amount of borrowing and in doing so, providing the borrower with funds to pay off debts or to make home improvements. When a property goes up in value, the homeowner’s equity stake goes up and remortgaging is a great way to gain access to that increase in value without having to sell your home.
It may be better to approach your existing lender when remortgaging due to potential penalties for breaking the terms of any tie in you might have, but should you not be subject to any restrictions, looking elsewhere for a good deal can really pay dividends.
To Reduce Monthly Outgoings
Remortgaging can also be a way to reduce the amount you pay out each month, as you may be able to spread the total borrowed amount over an extended period. A move like this can make things easier financially month to month, but you should be aware that it will probably cost you more in interest, as the term of the mortgage will be longer.
When considering a major, complex decision like remortgaging your home, it’s imperative that you seek professional help so that they can assess your unique personal circumstances and give you a clear view of whether it makes financial sense. Other costs like remortgaging arrangement fees also need to be taken into consideration, as whilst they might seem incidental, they can be considerable enough to tip the balance and turn a wise decision into an unwise one.
Is remortgaging right for you? Well, that depends on you and if you take one thing away from reading this blog, it should be that you should look before you leap, because if you don’t, you could end up counting the cost in the long run. In this scenario, having someone in your corner who knows what they’re doing is a must.
At REMO UK, we offer fee free expert advice on mortgages and remortgages to our clients across the UK and everything we do is regulated by the Financial Conduct Authority (FCA). If you would like to know more about anything mentioned above or about how we make the entire remortgaging process simple, please visit us online at www.remouk.co.uk where you can find lots of useful information.
Alternatively, if you would like to talk to one of our friendly experts about your remortgaging needs, call us now on 0113 873 0113 and they’ll do everything they can to help.
YOU MAY HAVE TO PAY AN EARLY REPAYMENT CHARGE TO YOUR EXISTING LENDER IF YOU REMORTGAGE.
A MORTGAGE IS A LOAN SECURED AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE OR OTHER DEBT SECURED ON IT.